Texas Property Code 64.061 – Attachment, Perfection, and Priority of Assignee’s Security Interest in Proceeds
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(a) An assignee’s security interest in rents attaches to identifiable proceeds.
(b) If an assignee’s security interest in rents is perfected, the assignee’s security interest in identifiable cash proceeds is perfected.
Terms Used In Texas Property Code 64.061
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(c) Except as provided by Subsection (b), the provisions of Chapter 9, Business & Commerce Code, or the comparable Uniform Commercial Code provisions of another applicable jurisdiction, determine:
(1) whether an assignee’s security interest in proceeds is perfected;
(2) the effect of perfection or nonperfection;
(3) the priority of an interest in proceeds; and
(4) the law governing perfection, the effect of perfection or nonperfection, and the priority of an interest in proceeds.
(d) For purposes of this chapter, cash proceeds are identifiable if they are maintained in a segregated deposit account or, if commingled with other funds, to the extent they can be identified by a method of tracing, including application of equitable principles, that is permitted under a law of this state other than this chapter with respect to commingled funds.