87R1954 JES-D     By: Walle H.B. No. 777       A BILL TO BE ENTITLED   AN ACT   relating to the repossession of a motor vehicle after default on an   agreement.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 4, Finance Code, is amended by   adding Chapter 355 to read as follows:   CHAPTER 355.  REPOSSESSION OF MOTOR VEHICLE AFTER DEFAULT          Sec. 355.001.  DEFINITION. In this chapter, "motor vehicle"   has the meaning assigned by Section 348.001.          Sec. 355.002.  RESTRICTION ON COLLECTION OF DEFICIENCY   BALANCE AFTER REPOSSESSION SALE. (a) Notwithstanding any other   law, a lender or other person who repossesses a motor vehicle after   a default under a loan, lease, or other agreement and who sells the   vehicle to secure repayment of the debt is not entitled to collect   from the borrower any amount for a deficiency balance resulting   from the sale if the value of the vehicle is less than $2,000 unless   the borrower:                (1)  damages the vehicle; or                (2)  wrongfully fails, after default and demand, to   make the vehicle available to the lender or other person.          (b)  For purposes of Subsection (a), the value of a motor   vehicle is the fair market value of the vehicle on the date of   repossession.          SECTION 2.  The changes in law made by this Act apply only to   an agreement entered into on or after the effective date of this   Act.          SECTION 3.  This Act takes effect September 1, 2021.