SRC-AAA H.B. 1266 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1266
By: Oliveira (Patterson)
Economic Development
4-21-97
Engrossed


DIGEST 

Currently, if a U.S. citizen wishes to purchase property located within
Mexico's "forbidden zones," the only sources of financing are through the
seller or a Mexican bank.  U.S. citizens are subject to exorbitant terms
and do not have the benefit of valuable consumer safeguards that are
customary in the United States.  This bill would allow the creation of
dollar-denominated lending programs for U.S. citizens purchasing
residential property in Mexico and include many U.S. consumer safeguards. 

PURPOSE

As proposed, H.B. 1266 allows the creation of dollar-denominated lending
programs for U.S. citizens purchasing residential property in Mexico and
includes many U.S. consumer safeguards. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 79, Article 5069-1.07, V.T.C.S., to provide that a
loan, the proceeds of which are used primarily to purchase an interest in
a trust that has as its principal asset real property located outside the
United States, is not subject to Subtitle 2 of this title.  Provides that
the loan is subject to certain interest rate limitations. Sets forth
requirements for collateral, interest rates, and charges to the principal
amount. 

SECTION 2. Emergency clause.
  Effective date: upon passage.