Sec. 1201.219. PERFECTION, EFFECT, AND RELEASE OF LIENS. (a) A lien on manufactured homes in inventory is perfected only by filing a financing statement in accordance with Section 9.310, Business & Commerce Code, and the other provisions of that code related to security interests for inventory. Once perfected, the lien applies to the manufactured homes in the inventory as well as to any proceeds from the sale of those homes. The department may suspend or revoke the license of a retailer who fails to satisfy a perfected inventory lien.
(b) Except as provided by Subsection (a) and subject to Subsection (d), a lien on a manufactured home is perfected only by filing with the department the notice of lien on a form provided by the department. The department shall disclose on its website the date of each lien filing. A lien recorded with the department has priority, according to the chronological order of recordation, over another lien or claim against the manufactured home.
(b-1) Notwithstanding any other law, a lien perfected with the department may be released only by filing a request for the release with the department on the form provided by the department or by following the department's procedures for electronic lien release on the department's Internet website. This subsection does not apply to the release of a tax lien perfected with the department.
(c) Notwithstanding any other provision of this section or any other law, the filing of a financing statement to perfect a lien on the inventory of a retailer as described by Subsection (a) does not prevent a buyer in the ordinary course of business, as defined by Section 1.201, Business & Commerce Code, from acquiring good and marketable title free of that lien, and the department may not consider that lien for the purpose of title issuance.
(d) A tax lien on a manufactured home not held in a retailer's inventory is perfected only by filing with the department the notice of the tax lien on a form provided by the department in accordance with the requirements of Chapter 32, Tax Code. The form must require the disclosure of the original dollar amount of the tax lien and the name and address of the person in whose name the manufactured home is listed on the tax roll. The department shall disclose on its Internet website the date of each tax lien filing, the original amount of the tax lien claimed by each filing, and the fact that the amount shown does not include additional sums, including interest, penalties, and attorney's fees. The statement required by Section 1201.205(7) is notice to all persons that the tax lien exists. A tax lien recorded with the department has priority over another lien or claim against the manufactured home. Tax liens shall be filed by the tax collector for any taxing unit having the power to tax the manufactured home. A single filing by a tax collector is a filing for all the taxing units for which the tax collector is empowered to collect.
(e) A tax lien perfected with the department may be released only by:
(1) filing with the department a tax certificate or tax paid receipt in accordance with Section 32.015, Tax Code;
(2) filing a request for the release with the department on the form provided by the department;
(3) following the department's procedures for electronic tax lien release on the department's Internet website;
(4) a tax collector filing a tax lien release with the department as provided by Subsection (f); or
(5) the department in the manner provided by Subsection (h).
(f) On request by any person, a tax collector shall file a tax lien release with the department if the four-year statute of limitations to file a suit for collection of personal property taxes in Section 33.05(a)(1), Tax Code, has expired.
(g) The department may request that a tax collector confirm that no tax suit has been timely filed on any manufactured home tax lien more than four years in delinquency. The department may make a request under this subsection electronically, and a taxing authority may provide notice of the existence or absence of a timely filed tax suit electronically.
(h) The department shall remove from a manufactured home's statement of ownership a reference to any tax lien delinquent more than four years for which no suit has been timely filed in accordance with Section 33.05(a)(1), Tax Code, if:
(1) a tax collector confirms no suit has been filed; or
(2) the department:
(A) has submitted to a tax collector two requests under Subsection (g) sent not fewer than 15 days apart; and
(B) has not received any response from the tax collector before the 60th day after the tax collector's receipt of the second request.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 25, eff. June 18, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1284 (H.B. 2438), Sec. 18, eff. June 18, 2005.
Acts 2005, 79th Leg., Ch. 1284 (H.B. 2438), Sec. 34(1), eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 32, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch. 77 (H.B. 2238), Sec. 11, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 46 (H.B. 1510), Sec. 5, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1095 (H.B. 3613), Sec. 2, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1095 (H.B. 3613), Sec. 3, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 44, eff. September 1, 2017.
Acts 2023, 88th Leg., R.S., Ch. 731 (H.B. 2706), Sec. 4, eff. September 1, 2023.