Texas Transportation Code 501.114 – Assignment of Lien
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(a) A lienholder may assign a lien recorded under § 501.113 without making any filing or giving any notice under this chapter. The lien assigned remains valid and perfected and retains its priority, securing the obligation assigned to the assignee, against transferees from and creditors of the debtor, including lien creditors, as defined by § 9.102, Business & Commerce Code.
(b) An assignee or assignor may, but need not to retain the validity, perfection, and priority of the lien assigned, as evidence of the assignment of a lien recorded under § 501.113:
(1) apply to the county assessor-collector for the assignee to be named as lienholder on the title; and
(2) notify the debtor of the assignment.
Terms Used In Texas Transportation Code 501.114
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: means real and personal property. See Texas Government Code 311.005
(c) Failure to make application under Subsection (b) or notify a debtor of an assignment does not create a cause of action against the recorded lienholder, the assignor, or the assignee or affect the continuation of the perfected status of the assigned lien in favor of the assignee against transferees from and creditors of the debtor, including lien creditors, as defined by § 9.102, Business & Commerce Code.
(d) An application under Subsection (b) must be acknowledged by the assignee.
(e) On receipt of the completed application and fee, the department may:
(1) amend the department’s records to substitute the assignee for the recorded lienholder; and
(2) issue a new title as provided by this chapter.
(f) The issuance of a title under Subsection (e) is recordation of the assignment.
(g) Regardless of whether application is made for the assignee to be named as lienholder on the title, the time of the recordation of a lien assigned under this section is considered to be the time the lien was initially recorded under § 501.113.
(h) Notwithstanding Subsections (a)-(g) and procedures that may be conducted under those subsections, the assignment of a lien does not affect the procedures applicable to the foreclosure of a worker’s lien under Chapter 70, Property Code, or the rights of the holder of a worker’s lien. Notice given to the last known lienholder of record, as provided by that chapter, is adequate to allow foreclosure under that chapter.
(i) Notwithstanding Subsections (a)-(g) and the procedures that may be conducted under those subsections, the assignment of a lien does not affect the procedures applicable to the release of a holder’s lien under § 348.408, Finance Code.