By Harris                                              S.B. No. 804
          Substitute the following for S.B. No. 804:
          By Marchant                                        C.S.S.B. No. 804
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to preparation of certain secondary loan documents by an
    1-3  attorney.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 5, Title 79, Revised Statutes (Article
    1-6  5069-5.01 et seq., Vernon's Texas Civil Statutes), is amended by
    1-7  adding Article 5.04A to read as follows:
    1-8        Art. 5.04A.  DOCUMENT PREPARATION BY AN ATTORNEY.  (a)  A
    1-9  document that is prepared in connection with a secondary mortgage
   1-10  loan and that affects title to real property shall be prepared by
   1-11  or under the direction of an attorney who is licensed under the
   1-12  laws of the State of Texas.
   1-13        (b)  A deed of trust or other security instrument prepared in
   1-14  connection with a secondary mortgage loan must contain a notice of
   1-15  the attorney or law firm that prepared the document.  The notice
   1-16  must be conspicuously printed, stamped, or typed in at least
   1-17  10-point bold type or its equivalent and must be in the following
   1-18  form with the blanks appropriately filled:
   1-19                                NOTICE
   1-20        Your loan documents have been prepared by the following
   1-21        attorney or law firm:                    .
   1-22        If you have a question regarding the terms and
   1-23        conditions of this document, you should seek the advice
   1-24        and counsel of the attorney of your choice.
    2-1        If you sign this document and you fail to meet the
    2-2        terms and conditions of this document, you may lose
    2-3        your legal ownership rights in your home.  KNOW YOUR
    2-4        RIGHTS AND DUTIES UNDER THE LAW.
    2-5        (c)  A deed of trust or other security instrument that does
    2-6  not contain the notice required by this Article or an equivalent
    2-7  notice as provided by Section 41.007 of the Property Code shall be
    2-8  deemed to be in violation of the provisions of Chapter 5, Title 79,
    2-9  revised statutes and subject to the consequences of such violation.
   2-10        SECTION 2.  This Act applies only to a document executed on
   2-11  or after the effective date of this Act.  A document executed
   2-12  before the effective date of this Act is covered by the law in
   2-13  effect when the document was executed, and the former law is
   2-14  continued in effect for that purpose.
   2-15        SECTION 3.  This Act takes effect September 1, 1995.
   2-16        SECTION 4.  The importance of this legislation and the
   2-17  crowded condition of the calendars in both houses create an
   2-18  emergency and an imperative public necessity that the
   2-19  constitutional rule requiring bills to be read on three several
   2-20  days in each house be suspended, and this rule is hereby suspended.