1-1  By:  Harris                                            S.B. No. 804
    1-2        (In the Senate - Filed February 28, 1995; March 1, 1995, read
    1-3  first time and referred to Committee on Jurisprudence;
    1-4  April 26, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 6, Nays 0; April 26, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 804                   By:  Harris
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to preparation of certain secondary loan documents by an
   1-11  attorney.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Chapter 5, Title 79, Revised Statutes (Article
   1-14  5069-5.01 et seq., Vernon's Texas Civil Statutes), is amended by
   1-15  adding Article 5.04A to read as follows:
   1-16        Art. 5.04A.  DOCUMENT PREPARATION BY AN ATTORNEY.  (a)  A
   1-17  document that is prepared in connection with a secondary mortgage
   1-18  loan and that affects title to real property may be prepared only
   1-19  by an attorney who is licensed in the State of Texas.
   1-20        (b)  A deed of trust or other security instrument prepared in
   1-21  connection with a secondary mortgage loan must contain a notice of
   1-22  the attorney or law firm that prepared the document.  The notice
   1-23  must be in at least 10-point bold type or its equivalent and must
   1-24  be in the following form with the blanks appropriately filled:
   1-25                                NOTICE
   1-26        Your loan documents have been prepared by the following
   1-27        attorney or law firm:  ______________________________.
   1-28        The   business   address   of   the  attorney  or  firm
   1-29        is _________________________________________.
   1-30        The  telephone  number  of   the   attorney   or   firm
   1-31        is _________________________________________.
   1-32        If you have a question regarding the terms and
   1-33        conditions of this  document,  call  the  following
   1-34        person   at  the  office  of   the   attorney  or
   1-35        firm:  ___________________________.
   1-36        You may call between ___a.m. and ___p.m. on the
   1-37        following days:  ____________________________________ .
   1-38        If you sign this document and you fail to meet the
   1-39        conditions of this document, you may lose your legal
   1-40        ownership rights in your home.  KNOW YOUR RIGHTS AND
   1-41        DUTIES UNDER THE LAW.
   1-42        (c)  A deed of trust or other security instrument that does
   1-43  not contain the notice required by this article shall be deemed to
   1-44  be in violation of the provisions of Chapter 5, Title 79, Revised
   1-45  Statutes (Article 5069-5.01 et seq., Vernon's Texas Civil
   1-46  Statutes), and subject to the consequences of such violation.
   1-47        SECTION 2.  This Act applies only to a document executed on
   1-48  or after the effective date of this Act.  A document executed
   1-49  before the effective date of this Act is covered by the law in
   1-50  effect when the document was executed, and the former law is
   1-51  continued in effect for that purpose.
   1-52        SECTION 3.  This Act takes effect September 1, 1995.
   1-53        SECTION 4.  The importance of this legislation and the
   1-54  crowded condition of the calendars in both houses create an
   1-55  emergency and an imperative public necessity that the
   1-56  constitutional rule requiring bills to be read on three several
   1-57  days in each house be suspended, and this rule is hereby suspended.
   1-58                               * * * * *