PROPERTY CODE

CHAPTER 61. MOTOR VEHICLE MORTGAGEE'S LIEN


	§ 61.001.  DEFINITIONS.  In this chapter:                                   
		(1)  "Motor vehicle" means any motor-driven or 
propelled vehicle required to be registered or licensed under the 
laws of this state.
		(2)  "Mortgagee" means a secured party, as defined by 
Section 9.102, Business & Commerce Code, holding a lien on a motor 
vehicle that has been perfected pursuant to Subchapter F, Chapter 
501, Transportation Code.
		(3)  "Mortgagor" means a debtor, as defined by Section 
9.102, Business & Commerce Code, giving a lien or agreeing that a 
lien may be retained on a motor vehicle.

Added by Acts 1989, 71st Leg., ch. 171, § 1, eff. Sept. 1, 1989.  
Amended by Acts 1997, 75th Leg., ch. 165, § 30.246, eff. Sept. 1, 
1997;  Acts 1999, 76th Leg., ch. 414, § 2.37, eff. July 1, 2001.


	§ 61.002.  LIEN.  A mortgagee has a lien on a cause of 
action or other claim of a mortgagor in connection with an accident 
that involves a motor vehicle on which the mortgagee has perfected a 
lien and that is attributable to the negligence of another person.

Added by Acts 1989, 71st Leg., ch. 171, § 1, eff. Sept. 1, 1989.           


	§ 61.003.  PROPERTY TO WHICH LIEN ATTACHES.  The lien 
attaches to:        
		(1)  a cause of action for damages arising from 
property damage to a motor vehicle on which the mortgagee has 
perfected a lien caused by an accident that is attributable to the 
negligence of another person;
		(2)  a judgment of a court in favor of a mortgagor 
arising from property damage to a motor vehicle on which the 
mortgagee has perfected a lien caused by an accident that is 
attributable to the negligence of another person;
		(3)  the proceeds of a settlement of a cause of action 
or a claim by the mortgagor for property damage to a motor vehicle 
on which the mortgagee has perfected a lien caused by an accident 
that is attributable to the negligence of another person;  and
		(4)  the proceeds of a property damage liability 
insurance policy carried by another person that protects the other 
person against property damage loss caused by accident or 
collision.

Added by Acts 1989, 71st Leg., ch. 171, § 1, eff. Sept. 1, 1989.           


	§ 61.004.  AMOUNT OF LIEN.  The amount of the lien is the 
lesser of:      
		(1)  the fair market value of the motor vehicle before 
the accident;        
		(2)  the reasonable cost of repair to the motor 
vehicle;  or                
		(3)  the balance owed to the mortgagee by the 
mortgagor.                    

Added by Acts 1989, 71st Leg., ch. 171, § 1, eff. Sept. 1, 1989.  
Amended by Acts 1993, 73rd Leg., ch. 48, § 11, eff. Sept. 1, 
1993.


	§ 61.005.  DISCHARGE OF LIEN.  If the property to which a 
lien created under this chapter attaches is paid jointly to the 
mortgagee and the mortgagor, the lien is discharged.

Added by Acts 1989, 71st Leg., ch. 171, § 1, eff. Sept. 1, 1989.