Bill Text: TX HB2425 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to the form, content, and provision of payoff statements for property tax loans.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-05-01 - Committee report sent to Calendars [HB2425 Detail]
Download: Texas-2013-HB2425-Comm_Sub.html
| 83R22784 DDT-F | |||
| By: Martinez | H.B. No. 2425 | ||
| Substitute the following for H.B. No. 2425: | |||
| By: Hilderbran | C.S.H.B. No. 2425 | ||
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| relating to the form, content, and provision of payoff statements | ||
| for property tax loans. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 32.06, Tax Code, is amended by amending | ||
| Subsection (a-4) and adding Subsections (a-5) and (a-6) to read as | ||
| follows: | ||
| (a-4) The Finance Commission of Texas shall: | ||
| (1) prescribe the form and content of an appropriate | ||
| disclosure statement to be provided to a property owner before the | ||
| execution of a tax lien transfer; | ||
| (2) adopt rules relating to the reasonableness of | ||
| closing costs, fees, and other charges permitted under this | ||
| section; [ |
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| (3) by rule prescribe the form and content of the sworn | ||
| document under Subsection (a-1) and the certified statement under | ||
| Subsection (b); and | ||
| (4) by rule prescribe the form and content of a request | ||
| a lender with an existing recorded lien on the property must use to | ||
| request a payoff statement and the transferee's response to the | ||
| request, including the period within which the transferee must | ||
| respond. | ||
| (a-5) At the time the transferee provides the disclosure | ||
| statement required by Subsection (a-4)(1), the transferee must also | ||
| describe the type and approximate cost range of each additional | ||
| charge or fee that the property owner may incur in connection with | ||
| the transfer. | ||
| (a-6) Notwithstanding Subsection (f-3), a lender described | ||
| by Subsection (a-4)(4) may request a payoff statement before the | ||
| tax loan becomes delinquent. The Finance Commission of Texas by | ||
| rule shall require a transferee who receives a request for a payoff | ||
| statement to deliver the requested payoff statement on the | ||
| prescribed form within a period prescribed by finance commission | ||
| rule. The prescribed period must allow the transferee at least | ||
| seven business days after the date the request is received to | ||
| deliver the payoff statement. The consumer credit commissioner may | ||
| assess an administrative penalty under Subchapter F, Chapter 14, | ||
| Finance Code, against a transferee who wilfully fails to provide | ||
| the payoff statement as prescribed by finance commission rule. | ||
| SECTION 2. As soon as practicable after the effective date | ||
| of this Act, the Finance Commission of Texas shall adopt rules | ||
| necessary to implement the changes in law made by this Act. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2013. | ||
