LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 17, 1995



 TO:     Honorable Kenny Marchant, Chair        IN RE:  House Bill No. 947
         Committee on Financial Institutions            By:  Pitts
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
947 (Relating to loans secured by liens on agricultural or open-
space land.) this office has determined the following:

The bill would not allow a lender to require a borrower to waive
rights to an agricultural or open space appraisal as a condition
of obtaining a loan.  However, a lender may require the borrower
to establish an escrow account and to deposit an amount equal to
the additional taxes and interest that would be due if a sale or
change of use occurred on January 1 of the year in which the loan
is granted or amended.  On request of the  borrower, the assessor
for each taxing unit would be required to compute the additional
taxes and interest.


No fiscal implication to the State is anticipated.

The fiscal implication to  units of local government cannot be
determined.


Source:
          LBB Staff: JK, BR, RR