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.