(a) A county assessor-collector who receives an application for a title shall issue a title receipt to the applicant containing the information concerning the motor vehicle required for issuance of a title under Section 501.021 or Subchapter I after:
(1) the requirements of this chapter are met, including the payment of the fees required under Section 501.138; and
(2) the information is entered into the department's titling system.
(b) If a lien is not disclosed on the application for a title, the assessor-collector shall issue a title receipt to the applicant.
(c) If a lien is disclosed on the application for a title, the assessor-collector shall issue a duplicate title receipt to the lienholder.
(d) A title receipt with registration or permit authorizes the operation of the motor vehicle on a public highway in this state until the title is issued.