Texas § PR.64.051 - SECURITY INSTRUMENT CREATES ASSIGNMENT OF RENTS

§ PR.64.051. SECURITY INSTRUMENT CREATES ASSIGNMENT OF RENTS

SECURITY INSTRUMENT CREATES ASSIGNMENT OF RENTS; ASSIGNMENT OF RENTS CREATES SECURITY INTEREST. (a) An enforceable security instrument creates an assignment of rents arising from real property described in that security instrument, unless the security instrument provides otherwise or the security instrument is governed by Section 50 (a)(6), (7), or (8), Article XVI, Texas Constitution. (b) An assignment of rents creates a presently effective security interest in all accrued and unaccrued rents arising from the real property described in the security instrument creating the assignment, regardless of whether the security instrument is in the form of an absolute assignment, an absolute assignment conditioned on default or other event, an assignment as additional security, or any other form. The security interest in rents is separate and distinct from any security interest held by the assignee in the real property from which the rents arise. (c) An assignment of rents does not reduce the secured obligation except to the extent the assignee collects rents and applies, or is obligated to apply, the collected rents to payment of the secured obligation. Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889 ), Sec. 2, eff. June 17, 2011. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848 ), Sec. 3, eff. June 14, 2013.