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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.
feedback