Texas Penal Code 32.33 – Hindering Secured Creditors
Current as of: 2024 | Check for updates
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(a) For purposes of this section:
(1) “Remove” means transport, without the effective consent of the secured party, from the state in which the property was located when the security interest or lien attached.
(2) “Security interest” means an interest in personal property or fixtures that secures payment or performance of an obligation.
(b) A person who has signed a security agreement creating a security interest in property or a mortgage or deed of trust creating a lien on property commits an offense if, with intent to hinder enforcement of that interest or lien, he destroys, removes, conceals, encumbers, or otherwise harms or reduces the value of the property.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| State jail felony | between 180 days and 2 years | up to $10,000 |
| Class A misdemeanor | up to 1 year | up to $4,000 |
| Class B misdemeanor | up to 180 days | up to $2,000 |
| Class C misdemeanor | up to $500 |
Terms Used In Texas Penal Code 32.33
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Effective consent: includes consent by a person legally authorized to act for the owner. See Texas Penal Code 1.07
- Felony: means an offense so designated by law or punishable by death or confinement in a penitentiary. See Texas Penal Code 1.07
- Lien: A claim against real or personal property in satisfaction of a debt.
- Misdemeanor: means an offense so designated by law or punishable by fine, by confinement in jail, or by both fine and confinement in jail. See Texas Penal Code 1.07
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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.
- Person: means an individual or a corporation, association, limited liability company, or other entity or organization governed by the Business Organizations Code. See Texas Penal Code 1.07
- Personal property: All property that is not real property.
- Possession: means actual care, custody, control, or management. See Texas Penal Code 1.07
- Property: means real and personal property. See Texas Government Code 311.005
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
(c) For purposes of this section, a person is presumed to have intended to hinder enforcement of the security interest or lien if, when any part of the debt secured by the security interest or lien was due, he failed:
(1) to pay the part then due; and
(2) if the secured party had made demand, to deliver possession of the secured property to the secured party.
(d) An offense under Subsection (b) is a:
(1) Class C misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is less than $100;
(2) Class B misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $100 or more but less than $750;
(3) Class A misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $750 or more but less than $2,500;
(4) state jail felony if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $2,500 or more but less than $30,000;
(5) felony of the third degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $30,000 or more but less than $150,000;
(6) felony of the second degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $150,000 or more but less than $300,000; or
(7) felony of the first degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $300,000 or more.
(e) A person who is a debtor under a security agreement, and who does not have a right to sell or dispose of the secured property or is required to account to the secured party for the proceeds of a permitted sale or disposition, commits an offense if the person sells or otherwise disposes of the secured property, or does not account to the secured party for the proceeds of a sale or other disposition as required, with intent to appropriate (as defined in Chapter 31) the proceeds or value of the secured property. A person is presumed to have intended to appropriate proceeds if the person does not deliver the proceeds to the secured party or account to the secured party for the proceeds before the 11th day after the day that the secured party makes a lawful demand for the proceeds or account. An offense under this subsection is:
(1) a Class C misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of less than $100;
(2) a Class B misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $100 or more but less than $750;
(3) a Class A misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $750 or more but less than $2,500;
(4) a state jail felony if the proceeds obtained from the sale or other disposition are money or goods having a value of $2,500 or more but less than $30,000;
(5) a felony of the third degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $30,000 or more but less than $150,000;
(6) a felony of the second degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $150,000 or more but less than $300,000; or
(7) a felony of the first degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $300,000 or more.