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House Bill 637 |
House Author: Goolsby |
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Effective: 9-1-05 |
Senate Sponsor: Zaffirini |
House Bill 637 amends the Probate Code to allow a parent or managing conservator of a minor without guardianship or a guardian of a minor ward to apply to the court on behalf of the minor or ward for a home equity loan that is secured wholly or partly by a lien on a residence homestead in which the minor or ward has an ownership interest of not greater than $100,000 and, in the case of a parent of a minor, in which the parent has a homestead interest. The bill requires that such a loan be used only to make improvements or repairs to the homestead, to pay for educational or medical expenses of the minor or ward, or to pay the outstanding balance of the loan. The bill requires the parent, managing conservator, or guardian to make an annual accounting of the loan with the court, including the expenditure of the loan proceeds, and prohibits the minor or ward from disaffirming the loan.