Texas Business & Commerce Code
§ 9.615 — APPLICATION OF PROCEEDS OF DISPOSITION; LIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS
BC § 9.615Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. F. DEFAULT
Statute text
View on source(a)A secured party shall apply or pay over for application the cash proceeds of disposition under Section 9.610 in the following order to:
(1)the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(2)the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;
(3)the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:
(A)the secured party receives from the holder of the subordinate security interest or other lien an authenticated demand for proceeds before distribution of the proceeds is completed; and
(B)in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and
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Legislative history
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001. Amended by Acts 2001, 77th Leg., ch. 705, Sec. 21, eff. June 13, 2001.