Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Wolens                                        H.B. No. 447

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a voluntary consensual encumbrance on homestead

 1-3     property for the purpose of an equity loan.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 41.001(b), Property Code, is amended to

 1-6     read as follows:

 1-7           (b)  Encumbrances may be properly fixed on homestead property

 1-8     for:

 1-9                 (1)  purchase money;

1-10                 (2)  taxes on the property;

1-11                 (3)  work and material used in constructing

1-12     improvements on the property if contracted for in writing as

1-13     provided by Sections 53.059(a), (b), and (c);

1-14                 (4)  an owelty of partition imposed against the

1-15     entirety of the property by a court order or by a written agreement

1-16     of the parties to the partition, including a debt of one spouse in

1-17     favor of the other spouse resulting from a division or an award of

1-18     a family homestead in a divorce proceeding; [or]

1-19                 (5)  the refinance of a lien against a homestead,

1-20     including a federal tax lien resulting from the tax debt of both

1-21     spouses, if the homestead is a family homestead, or from the tax

1-22     debt of the owner; or

1-23                 (6)  an equity loan as defined by and made in

1-24     compliance with Section 50, Article XVI, Texas Constitution.

 2-1           SECTION 2.  This Act takes effect on the date the

 2-2     constitutional amendment proposed by H.J.R. No. 44, 75th

 2-3     Legislature, Regular Session, 1997, takes effect.  If that

 2-4     amendment is not approved by the voters, this Act has no effect.

 2-5           SECTION 3.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended.