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.