By: Harris S.B. No. 804 A BILL TO BE ENTITLED AN ACT 1-1 relating to preparation of certain secondary loan documents by an 1-2 attorney. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 5, Title 79, Revised Statutes (Article 1-5 5069-5.01 et seq., Vernon's Texas Civil Statutes), is amended by 1-6 adding Article 5.04A to read as follows: 1-7 Art. 5.04A. DOCUMENT PREPARATION BY AN ATTORNEY. (a) A 1-8 document that is prepared in connection with a secondary mortgage 1-9 loan and that affects title to real property may be prepared only 1-10 by an attorney who is licensed in the State of Texas. 1-11 (b) A deed of trust or other security instrument prepared in 1-12 connection with a secondary mortgage loan must contain a notice of 1-13 the attorney or law firm that prepared the document. The notice 1-14 must be in at least 10-point bold type or its equivalent and must 1-15 be in the following form with the blanks appropriately filled: 1-16 NOTICE 1-17 Your loan documents have been prepared by the following 1-18 attorney or law firm: ______________________________. 1-19 The business address of the attorney or firm 1-20 is _________________________________________. 1-21 The telephone number of the attorney or firm 1-22 is _________________________________________. 1-23 If you have a question regarding the terms and 1-24 conditions of this document, call the following 2-1 person at the office of the attorney or 2-2 firm: ___________________________. 2-3 You may call between ___a.m. and ___p.m. on the 2-4 following days: ____________________________________ . 2-5 If you sign this document and you fail to meet the 2-6 conditions of this document, you may lose your legal 2-7 ownership rights in your home. KNOW YOUR RIGHTS AND 2-8 DUTIES UNDER THE LAW. 2-9 (c) A deed of trust or other security instrument that does 2-10 not contain the notice required by this article shall be deemed to 2-11 be in violation of the provisions of Chapter 5, Title 79, Revised 2-12 Statutes (Article 5069-5.01 et seq., Vernon's Texas Civil 2-13 Statutes), and subject to the consequences of such violation. 2-14 SECTION 2. This Act applies only to a document executed on 2-15 or after the effective date of this Act. A document executed 2-16 before the effective date of this Act is covered by the law in 2-17 effect when the document was executed, and the former law is 2-18 continued in effect for that purpose. 2-19 SECTION 3. This Act takes effect September 1, 1995. 2-20 SECTION 4. The importance of this legislation and the 2-21 crowded condition of the calendars in both houses create an 2-22 emergency and an imperative public necessity that the 2-23 constitutional rule requiring bills to be read on three several 2-24 days in each house be suspended, and this rule is hereby suspended.