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.