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.