Texas Property Code

§ 64.058 — APPLICATION OF PROCEEDS GENERALLY

PR § 64.058Title 5. EXEMPT PROPERTY AND LIENS · Part B. LIENS · Ch. 64. ASSIGNMENT OF RENTS TO LIENHOLDER · Art. B. ASSIGNMENT OF RENTS

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Unless otherwise agreed, an assignee who collects rents under this chapter or collects on a judgment in an action under Section 64.060 shall apply the sums collected in the following order to:

(1)reimbursement of the assignee's expenses of enforcing the assignee's assignment of rents, including, to the extent provided for by agreement by the assignor and not prohibited by a law of this state other than this chapter, reasonable attorney's fees and costs incurred by the assignee;

(2)reimbursement of any expenses incurred by the assignee to protect or maintain the real property that is subject to the assignment of rents;

(3)payment of the secured obligation;

(4)payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignee receives a signed notice from the holder of the interest or lien demanding payment of the proceeds; and

(5)payment of any excess proceeds to the assignor. Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011. Amended by:

Legislative history

Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 8, eff. June 14, 2013.