TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 161. VETERANS LAND BOARD

SUBCHAPTER H. FORFEITURE



§ 161.311. BOARD JUDGE OF FORFEITURE.
     The board is the sole judge of forfeiture of any purchase contract under this chapter and any person availing himself of the provisions of this chapter by so doing agrees to abide by this chapter.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.312. FORFEITURE BY BOARD.
     (a) If a portion of the principal of or interest on any sale is not paid when due, or if the provisions of this chapter, the contract, or the rules of the board are not complied with, the contract of sale and purchase is subject to forfeiture by action of the board on 30 days written notice to the original purchaser and his vendee.
     (b) The notice shall state the reason why the contract of sale and purchase is subject to forfeiture and is sufficient if given by certified mail to the last known address of the original purchaser and his vendees.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1999, 76th Leg., ch. 134, § 3, eff. May 20, 1999.

§ 161.313. CORRECTION OF REASON FOR FORFEITURE.
     If the person corrects or cures the reason for forfeiture within the 30-day notice period, the board shall not enter an order of forfeiture.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.314. TIME OF FORFEITURE.
     The forfeiture is effective at the time the board meets and adopts a resolution directing its chairman to endorse on the wrapper that contains the papers of the sale or on the purchase contract filed in the land office the word "forfeited" or words of similar import and the date of the action and to officially sign the document. At that time, the land and all payments previously made are forfeited.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.315. NOTICE TO COUNTY CLERK.
     Notice of the board's action in forfeiting the original contract shall be mailed to the county clerk of the county in which the land is located and the clerk shall:
          (1) enter a notation of the forfeiture on the margin of the page or pages containing the record of the original contract; or
          (2) record the notice of forfeiture.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 674, § 7, eff. Sept. 1, 2003.

§ 161.316. EFFECT OF FORFEITURE ON LEASES.
     On forfeiture, the full title to the land, including both surface and mineral estates, shall revest in the board, and the board shall recognize and continue in force and effect any outstanding valid oil, gas, or mineral lease and collect all rentals, royalties, or other amounts payable under the lease.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.317. REINSTATEMENT OF PURCHASE.
     (a) If a sale is forfeited and the title to the land revested in the fund, the original purchaser or the original purchaser's vendee is entitled to reinstate the purchase contract at any time before the date on which the board meets and orders the land to be advertised for resale or for lease for mineral development but not after that time. If a contract is forfeited more than two times, the board may require, as a condition of reinstatement, that the purchaser or the purchaser's vendee pay the account in full.
     (b) A person who exercises a right of reinstatement shall:
          (1) pay all delinquent installments, penalties, and costs incident to the reinstatement; and
          (2) fulfill any other requirements prescribed by the board.

Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 674, § 8, eff. Sept. 1, 2003.

§ 161.318. RESALE OF LAND.
     Land included in a forfeited contract is subject to resale under Section 161.319 of this code.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.319. RESALE OF FORFEITED LAND.
     (a) Resale of forfeited land under this chapter may be made to the highest bidder under terms and conditions and at the time and in the manner prescribed by the board in its rules, the provisions of this chapter notwithstanding.
     (b) The board may reject any and all bids.
     (c) If the successful bidder refuses to execute a contract of sale and purchase, the money submitted with the person's bid is forfeited and shall be deposited in the State Treasury and credited to the fund.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.26, eff. Aug. 30, 1993.

§ 161.320. LATE PAYMENTS;
     DEFAULT INTEREST RATE.
     (a) The board may impose charges for late payments.
     (b) In addition to charging for late payments under Subsection (a), the board may set and impose a default rate of interest on:
          (1) the past due amounts; or
          (2) the entire unpaid balance.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, § 14, eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 674, § 9, eff. Sept. 1, 2003.

§ 161.321. VACATING PREMISES.
     If the board declares a forfeiture under a purchase contract, the purchaser shall vacate the premises within 45 days after the date of the letter giving notice of the declaration. The letter shall be sent by registered mail to the last known address of the purchaser.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.322. ENFORCEMENT OF FORFEITURE AND PROTECTION OF RIGHTS.
     The board, by and through the attorney general, shall
      institute legal proceedings that are necessary to enforce the forfeiture or to recover the full amount of the delinquent installments, interest, and other penalties that may be due to the board at the time the forfeiture occurred or to protect any other right to the land.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.323. LIABILITY.
     The liability of the original veteran purchaser and any subsequent assignee or assignees of the veteran are joint and several, but the original veteran purchaser is primarily liable for payment of the money under the original contract of sale and purchase. The board may release an assignor from liability under this section if at least three years have passed since the approved assignment.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 674, § 10, eff. Sept. 1, 2003.

§ 161.324. DEFENSES IN LAWSUITS.
     After obtaining the permission of the legislature, in any action brought in the courts against the state involving the title to a tract of land to which the state has a warranty deed, the state is entitled to plead all statutes of limitations in the general laws of this state, but this shall not be considered as a limitation to any other defense the state may have.

Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1, 1977.