- (a) Section 32.06 does not abridge the right of an owner of real property to enter into a contract for the payment of taxes with the holder of a lien on the property, including a transferee under Section 32.06 or this section, or affect a contract between the owner and holder of a lien for the payment of taxes on the property.
(b) A contract entered into under Subsection (a) may provide for:
- (1) an event of default; and
- (2) notice of acceleration.
- (c) Notwithstanding any other provision of this code, a transferee of a tax lien is subrogated to and is entitled to exercise any right or remedy possessed by the transferring taxing unit, including or related to foreclosure or judicial sale.
- (d) Chapters 342 and 346, Finance Code, and Section 302.102, Finance Code, do not apply to a transaction covered by this section. The transferee of a tax lien under this section is not required to obtain a license under Title 4, Finance Code.
- (e) If in a contract under this section a person contracts for, charges, or receives a rate or amount of interest that exceeds the rate or amount allowed by this section, the amount of the penalty for which the person is obligated is determined in the manner provided by Chapter 349, Finance Code.
- (f) The first written communication by the lender to its prospective borrower shall disclose the types of possible additional charges or fees that may be incurred by the borrower in connection with the loan or contract under this section.
Acts 1979, 66th Leg., p. 2288, ch. 841, Sec. 1, eff. Jan. 1, 1982. Redesignated from Tax Code Sec. 32.06(j) and amended by Acts 1995, 74th Leg., ch. 131, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1396, Sec. 39, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 62, Sec. 7.91, eff. Sept. 1, 1999.