Texas Property Code 64.058 – Application of Proceeds Generally
Terms Used In Texas Property Code 64.058
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
Unless otherwise agreed, an assignee who collects rents under this chapter or collects on a judgment in an action under § 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.