75R6268 BEM-F By Oliveira, Williams H.B. No. 1266 Substitute the following for H.B. No. 1266: By Elkins C.S.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. For 1-14 the purpose of determining the rate of interest on the loan, all 1-15 interest contracted for, charged, or received shall be amortized, 1-16 prorated, allocated, and spread over the full stated term of the 1-17 loan. The principal amount of the loan may include any charge 1-18 permitted for a loan secured by an interest in real property that 1-19 is not classified as homestead property. 1-20 SECTION 2. The importance of this legislation and the 1-21 crowded condition of the calendars in both houses create an 1-22 emergency and an imperative public necessity that the 1-23 constitutional rule requiring bills to be read on three several 1-24 days in each house be suspended, and this rule is hereby suspended, 2-1 and that this Act take effect and be in force from and after its 2-2 passage, and it is so enacted.