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 * * * * *