(a) If the commissioner has actual notice that a person holds a security interest in a vessel or structure subject to removal or disposal under Texas Natural Resources Code §40.108, notice must be given to the person in the manner provided by Texas Natural Resources Code §40.254. The preliminary report sent to the lien holder shall specify a reasonable time for removal of the vessel or structure. The GLO has no obligation to check lien records for security interests in a vessel before its removal and disposal.
(b) If the vessel or structure is not removed within a reasonable time as specified in the preliminary report under, Texas Natural Resources Code §40.254, the commissioner may remove and dispose of, or contract for the removal and disposal of, a derelict vessel or structure described by subsection (a) of this section.
(c) The interest of the state in recovering removal, storage, and disposal costs shall have priority over the interest of the holder of a security interest in a vessel or structure described by subsection (a) of this section.
(d) A person claiming the right to possession as a lien holder of a vessel or structure subject to removal or disposal must demonstrate to the satisfaction of the commissioner that the security interest of the person has been perfected in accordance with the laws of this State or some other jurisdiction.
(e) The authorized public entity may deliver possession of a vessel or structure that has been the subject of a removal action in accordance with Texas Natural Resources Code §40.108, to a lien holder prior to its disposal. The lien holder must reimburse the authorized public entity for costs incurred for the removal and storage before delivery of possession and no later than the time specified in a notice of intention to dispose of the vessel or structure.
(f) Proceeds from the sale of the vessel or structure in excess of the cost of removal, storage, and disposal shall be paid to the holder of the security interest in the vessel or structure in an amount not to exceed the amount necessary to satisfy the secured debt.

Source Note: The provisions of this §19.75 adopted to be effective September 13, 2010, 35 TexReg 8377