By De La Garza H.B. No. 1898 74R3914 CLG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the transfer of lender's rights under certain loan 1-3 contracts secured by real property. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 132, Revised Statutes, is amended by adding 1-6 Article 9029 to read as follows: 1-7 Art. 9029. TRANSFER OF LENDER'S RIGHTS UNDER REAL ESTATE 1-8 LOANS TO CERTAIN FINANCIAL INSTITUTIONS AND OTHER BUSINESS ENTITIES 1-9 Sec. 1. In this article "financial institution" means a 1-10 bank, savings and loan association, savings bank, credit union, 1-11 trust company, mortgage banking company, insurance company, 1-12 investment trust, investment company, or any other organization 1-13 held out to the public as a place for the deposit or lending of 1-14 funds or as a medium of savings or collective investment. 1-15 Sec. 2. A lender may transfer the lender's rights or 1-16 interests under a contract for a loan secured by real property 1-17 located in this state, including a mortgage interest, only to: 1-18 (1) a financial institution that is organized under 1-19 the laws of this state; or 1-20 (2) a business entity, other than a financial 1-21 institution, that has its principal office located in this state. 1-22 SECTION 2. This Act takes effect September 1, 1995, and 1-23 applies only to contracts entered on or after that date. 1-24 SECTION 3. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended.