Texas § PR.64.058 - APPLICATION OF PROCEEDS GENERALLY

§ PR.64.058. APPLICATION OF PROCEEDS GENERALLY

APPLICATION OF PROCEEDS GENERALLY. Unless otherwise agreed, an assignee who collects rents under this chapter or collects on a judgment in an action under Section 64.060 shall apply the sums collected in the following order to: (1) reimbursement of the assignee's expenses of enforcing the assignee's assignment of rents, including, to the extent provided for by agreement by the assignor and not prohibited by a law of this state other than this chapter, reasonable attorney's fees and costs incurred by the assignee; (2) reimbursement of any expenses incurred by the assignee to protect or maintain the real property that is subject to the assignment of rents; (3) payment of the secured obligation; (4) payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignee receives a signed notice from the holder of the interest or lien demanding payment of the proceeds; and (5) payment of any excess proceeds to the assignor. 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. 8, eff. June 14, 2013.