By Oliveira, Williams, Seaman                         H.B. No. 1266

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a loan the proceeds of which are used to purchase an

 1-3     interest in a certain trust or entity that owns real property

 1-4     located outside the United States.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Article 1.07, Title 79, Revised Statutes (Article

 1-7     5069-1.07, Vernon's Texas Civil Statutes), is amended by adding

 1-8     Subsection (g) to read as follows:

 1-9           (g)  A loan, the proceeds of which are used primarily to

1-10     purchase an interest in a trust or other entity that has as its

1-11     principal asset real property located outside the United States, is

1-12     not subject to Subtitle 2 of this Title.  The loan is subject to

1-13     the interest rate limitations of Article 1.04 of this Title.  The

1-14     loan must comply with the laws of this state governing collateral

1-15     that may be used to secure the loan.  For the purpose of

1-16     determining the rate of interest on the loan, all interest

1-17     contracted for, charged, or received shall be amortized, prorated,

1-18     allocated, and spread over the full stated term of the loan.  The

1-19     principal amount of the loan may include any charge permitted for a

1-20     loan secured by an interest in real property that is not classified

1-21     as homestead property.

1-22           SECTION 2.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

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

 2-3     and that this Act take effect and be in force from and after its

 2-4     passage, and it is so enacted.