Texas Codes

Tex. Penal Code § 32.34 (2026)

Fraudulent Transfer Of A Motor Vehicle

✓ current as of May 2026

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Sec. 32.34. FRAUDULENT TRANSFER OF A MOTOR VEHICLE. (a) In this section:

(1) "Lease" means the grant of use and possession of a motor vehicle for consideration, whether or not the grant includes an option to buy the vehicle.

(2) "Motor vehicle" means a device in, on, or by which a person or property is or may be transported or drawn on a highway, except a device used exclusively on stationary rails or tracks.

(3) "Security interest" means an interest in personal property or fixtures that secures payment or performance of an obligation.

(4) "Third party" means a person other than the actor or the owner of the vehicle.

(5) "Transfer" means to transfer possession, whether or not another right is also transferred, by means of a sale, lease, sublease, lease assignment, or other property transfer.

(b) A person commits an offense if the person acquires, accepts possession of, or exercises control over the motor vehicle of another under a written or oral agreement to arrange for the transfer of the vehicle to a third party and:

(1) knowing the vehicle is subject to a security interest, lease, or lien, the person transfers the vehicle to a third party without first obtaining written authorization from the vehicle's secured creditor, lessor, or lienholder;

(2) intending to defraud or harm the vehicle's owner, the person transfers the vehicle to a third party;

(3) intending to defraud or harm the vehicle's owner, the person disposes of the vehicle in a manner other than by transfer to a third party; or

(4) the person does not disclose the location of the vehicle on the request of the vehicle's owner, secured creditor, lessor, or lienholder.

(c) For the purposes of Subsection (b)(2), the actor is presumed to have intended to defraud or harm the motor vehicle's owner if the actor does not take reasonable steps to determine whether or not the third party is financially able to pay for the vehicle.

(d) It is a defense to prosecution under Subsection (b)(1) that the entire indebtedness secured by or owed under the security interest, lease, or lien is paid or satisfied in full not later than the 30th day after the date that the transfer was made.

(e) It is not a defense to prosecution under Subsection (b)(1) that the motor vehicle's owner has violated a contract creating a security interest, lease, or lien in the motor vehicle.

(f) An offense under Subsection (b)(1), (b)(2), or (b)(3) is:

(1) a state jail felony if the value of the motor vehicle is less than $30,000;

(2) a felony of the third degree if the value of the motor vehicle is $30,000 or more but less than $150,000;

(3) a felony of the second degree if the value of the motor vehicle is $150,000 or more but less than $300,000; or

(4) a felony of the first degree if the value of the motor vehicle is $300,000 or more.

(g) An offense under Subsection (b)(4) is a Class A misdemeanor.

Added by Acts 1989, 71st Leg., ch. 954, Sec. 1, eff. Sept. 1, 1989. Renumbered from Penal Code, Sec. 32.36 and amended by Acts 1993, 73rd Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1251 (H.B. 1396), Sec. 18, eff. September 1, 2015.

Notes of Decisions

Cited in 12 cases (1 in the last 5 years), 1995–2024 · leading case: Ford Motor Credit v. Sanders (In Re Sanders), 403 B.R. 435 (W.D. Tex. 2009).

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Ford Motor Credit v. Sanders (In Re Sanders), 403 B.R. 435 (W.D. Tex. 2009). · cites it 2× “See Tex. Pen.Code § 32.34 (criminalizing acceptance of a trade-in vehicle secured by a prior lien without discharging the prior lien or obtaining the consent from the vehicle's secured creditor).”

Ford Motor Credit Co. v. Dale (In Re Dale), 582 F.3d 568 (5th Cir. 2009). “Tex. Penal Code § 32.34. 4 .In light of the New York Court of Appeals' decision in Peaslee, Ford argues that the Second Circuit will join the Fourth, Tenth and Eleventh Circuits in holding that a creditor’s purchase-money security interest encompasses the financing of negative…”

LeBlanc v. State, 908 S.W.2d 573 (Tex. App. 1995). “Laws 3586, 3647-48 (current version at Tex.Penal Code Ann. § 32.34 (Vernon 1994)).”

Norma Cisneros v. State (Tex. App. 2018). · cites it 4× “See Tex. Penal Code § 32.34(b). The trial court assessed her punishment at confinement for two years in the State Jail Division of the Texas Department of Criminal Justice, suspended the imposition of sentence, and placed appellant on community supervision for five years.”

Larry Chambers & Abie Wolf v. Juan Carlos Garay (Tex. App. 2020). · cites it 2× “Appellants argue in their response to Garay’s motion to dismiss that Garay violated Texas Penal Code section 32.34, which deals with fraudulent transfer of vehicles.”

Eric Roel Jimenez v. State (Tex. App. 2015). · cites it 2× “11 Tex. Pen. Code § 32.34(a)(2). . . . . . .”

Rafael De Los Santos v. State (Tex. App. 2018). “01(3); TEX.PENAL CODE ANN. § 32.34(a)(2)(West 2016).”

Jordan Shaun Rodgers v. the State of Texas (Tex. App. 2024). “, TEX. PENAL CODE ANN. §32.34 (motor vehicle means “a device in, on, or by which a person or property is or may be transported .”

Jeff Alan Rollins v. State (Tex. App. 2011). “However, viewing the evidence in the light most favorable to the trial court’s ruling and keeping in mind the lesser preponderance of the evidence standard, we conclude that the evidence is sufficient to show that Rollins did not have the “normal use of mental or physical…”

Donald Lewis v. State (Tex. App. 2013). “” See Tex. Penal Code Ann. § 32.34 (a)(1) (West 2011) (defining motor vehicle as such), § 49.”

James Mark Sadler v. State (Tex. App. 1998). “After accepting appellant's plea and hearing his judicial confession, the district court found him guilty and assessed punishment at imprisonment for five years as provided in a plea bargain agreement. In his only point of error, appellant contends the court failed to admonish…”

Benjamin Fira v. State (Tex. App. 2000). “See Tex. Penal Code Ann. § 32.34 (West 1994).”

— Tex. Penal Code § 32.34(a)(2) — 3 cases

Eric Roel Jimenez v. State (Tex. App. 2015). “11 Tex. Pen. Code § 32.34(a)(2). . . . . . .”

Rafael De Los Santos v. State (Tex. App. 2018). “01(3); TEX.PENAL CODE ANN. § 32.34(a)(2)(West 2016).”

— Tex. Penal Code § 32.34(b) — 1 case

Norma Cisneros v. State (Tex. App. 2018). “See Tex. Penal Code § 32.34(b). The trial court assessed her punishment at confinement for two years in the State Jail Division of the Texas Department of Criminal Justice, suspended the imposition of sentence, and placed appellant on community supervision for five years.”

— Tex. Penal Code § 32.34(b)(2) — 1 case

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