Bill Text: TX HB3955 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the repossession of a motor vehicle after default on an agreement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred to Pensions, Investments & Financial Services [HB3955 Detail]
Download: Texas-2019-HB3955-Introduced.html
86R13357 JES-D | ||
By: Walle | H.B. No. 3955 |
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relating to the repossession of a motor vehicle after default on an | ||
agreement. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by | ||
adding Chapter 355 to read as follows: | ||
CHAPTER 355. REPOSSESSION OF MOTOR VEHICLES AFTER DEFAULT | ||
Sec. 355.001. DEFINITION. In this chapter, "motor vehicle" | ||
has the meaning assigned by Section 348.001. | ||
Sec. 355.002. RESTRICTION ON COLLECTION OF DEFICIENCY | ||
BALANCE AFTER REPOSSESSION SALE. (a) Notwithstanding any other | ||
law, a lender or other person who repossesses a motor vehicle after | ||
a default under a loan, lease, or other agreement and who sells the | ||
vehicle to secure repayment of the debt is not entitled to collect | ||
from the borrower any amount for a deficiency balance resulting | ||
from the sale if the value of the vehicle is less than $2,000 unless | ||
the borrower: | ||
(1) damages the vehicle; or | ||
(2) wrongfully fails, after default and demand, to | ||
make the vehicle available to the lender or other person. | ||
(b) For purposes of Subsection (a), the value of a motor | ||
vehicle is the fair market value of the vehicle on the date of | ||
repossession. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
an agreement entered into on or after the effective date of this | ||
Act. | ||
SECTION 3. This Act takes effect September 1, 2019. |