Texas Government Code 1508.113 – Notice to Governing Body Before Foreclosure or Other Action
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(a) Unless written notice is given to the governing body of the municipality in accordance with this section that there is a default in payment of any installment of principal of or interest on an obligation issued under this subchapter or another violation of the terms of the pledge or loan:
(1) a collection fee may not accrue;
(2) a foreclosure proceeding may not be initiated in a court or through a trustee; and
(3) an option to mature any part of an obligation because of the default may not be exercised.
(b) A notice under Subsection (a) must be sent by prepaid registered mail to each member of the governing body of the municipality, addressed to the member at the post office in the municipality.
Terms Used In Texas Government Code 1508.113
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Trustee: A person or institution holding and administering property in trust.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) An action described by Subsection (a) may not be taken:
(1) before the 91st day after the date the notice is mailed; or
(2) if the default that gave rise to the action is cured within the time described by Subdivision (1).