By Uher                                                H.B. No. 333
          Substitute the following for H.B. No. 333:
          By Corte                                           C.S.H.B. No. 333
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to authorizing a deed-of-trust foreclosure after accepting
    1-3  a deed in lieu of foreclosure.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 51, Property Code, is amended by adding
    1-6  Section 51.006 to read as follows:
    1-7        Sec. 51.006.  DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF
    1-8  FORECLOSURE.  (a)  This section applies to a holder of a debt under
    1-9  a deed of trust who accepts from the debtor a deed conveying real
   1-10  property subject to the deed of trust in satisfaction of the debt.
   1-11        (b)  The holder of a debt may void a deed conveying real
   1-12  property in satisfaction of the debt before the fourth anniversary
   1-13  of the date the deed is executed and foreclosed under the original
   1-14  deed of trust if:
   1-15              (1)  the debtor fails to disclose to the holder of the
   1-16  debt a lien or other encumbrance on the property before executing
   1-17  the deed conveying the property to the holder of the debt in
   1-18  satisfaction of the debt; and
   1-19              (2)  the holder of the debt has no personal knowledge
   1-20  of the undisclosed lien or encumbrance on the property.
   1-21        (c)  A third party may conclusively rely upon the affidavit
   1-22  of the holder of a debt stating that the holder has voided the deed
   1-23  as provided in this section.
   1-24        (d)  If the holder elects to void a deed in lieu of
    2-1  foreclosure as provided in this section, the priority of its deed
    2-2  of trust shall not be affected or impaired by the execution of the
    2-3  deed in lieu of foreclosure.
    2-4        (e)  If a holder accepts a deed in lieu of foreclosure, the
    2-5  holder may foreclose its deed of trust as provided in said deed of
    2-6  trust without electing to void the deed.  The priority of such deed
    2-7  of trust shall not be affected or impaired by the deed in lieu of
    2-8  foreclosure.
    2-9        SECTION 2.  This Act applies only to a holder of a debt who
   2-10  accepts a deed conveying property in satisfaction of a debt on or
   2-11  after the effective date of this Act.
   2-12        SECTION 3.  The importance of this legislation and the
   2-13  crowded condition of the calendars in both houses create an
   2-14  emergency and an imperative public necessity that the
   2-15  constitutional rule requiring bills to be read on three several
   2-16  days in each house be suspended, and this rule is hereby suspended.