Texas § ES.355.153 - PAYMENT OF MATURED SECURED CLAIM

§ ES.355.153. PAYMENT OF MATURED SECURED CLAIM

PAYMENT OF MATURED SECURED CLAIM. (a) A claim allowed and approved as a matured secured claim under Section 355.151 (a)(1) shall be paid in due course of administration, and the secured creditor is not entitled to exercise any other remedy in a manner that prevents the preferential payment of claims and allowances described by Sections 355.103 (1), (2), and (3). (b) If a claim is allowed and approved as a matured secured claim under Section 355.151 (a)(1) for a debt that would otherwise pass with the property securing the debt to one or more devisees in accordance with Section 255.301 , the personal representative shall: (1) collect from the devisees the amount of the debt; and (2) pay that amount to the claimant in satisfaction of the claim. (c) Each devisee's share of the debt under Subsection (b) is an amount equal to a fraction representing the devisee's ownership interest in the property securing the debt, multiplied by the amount of the debt. (d) If the personal representative is unable to collect from the devisees an amount sufficient to pay the debt under Subsection (b), the representative shall, subject to Chapter 356 , sell the property securing the debt. The representative shall: (1) use the sale proceeds to pay the debt and any expenses associated with the sale; and (2) distribute the remaining sale proceeds to each devisee in an amount equal to a fraction representing the devisee's ownership interest in the property, multiplied by the amount of the remaining sale proceeds. (e) If the sale proceeds under Subsection (d) are insufficient to pay the debt and any expenses associated with the sale, the difference between the sale proceeds and the sum of the amount of the debt and the expenses associated with the sale shall be paid in the manner prescribed by Subsection (a). Added by Acts 2009, 81st Leg., R.S., Ch. 680 (H.B. 2502 ), Sec. 1, eff. January 1, 2014.