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.