Bill Text: TX HB2024 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the survival of a mechanic's retainage lien after the foreclosure of a lien securing a construction loan.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-26 - Left pending in committee [HB2024 Detail]
Download: Texas-2019-HB2024-Introduced.html
| 86R6302 BEE-F | ||
| By: Romero, Jr. | H.B. No. 2024 | |
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| relating to the survival of a mechanic's retainage lien after the | ||
| foreclosure of a lien securing a construction loan. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 53, Property Code, is | ||
| amended by adding Section 53.125 to read as follows: | ||
| Sec. 53.125. SURVIVAL OF RETAINAGE LIEN AFTER CERTAIN | ||
| FORECLOSURES. (a) A person who purchases property that is sold | ||
| due to the foreclosure of a lien that secures a financing agreement | ||
| or loan to pay for the construction or repair of an improvement to | ||
| real property takes the property subject to an unreleased retainage | ||
| lien established under Section 53.105. | ||
| (b) For purposes of this section, "retainage" includes | ||
| retainage under Subchapter E. | ||
| SECTION 2. The changes in law made by this Act apply only to | ||
| a lien related to an original contract entered into on or after the | ||
| effective date of this Act. A lien related to an original contract | ||
| entered into before the effective date of this Act is governed by | ||
| the law applicable to the lien immediately before the effective | ||
| date of this Act, and that law is continued in effect for that | ||
| purpose. | ||
| SECTION 3. This Act takes effect September 1, 2019. | ||
