1-1 By: Oliveira, Williams, Seaman H.B. No. 1266 1-2 (Senate Sponsor - Patterson) 1-3 (In the Senate - Received from the House April 1, 1997; 1-4 April 2, 1997, read first time and referred to Committee on 1-5 Economic Development; April 25, 1997, reported favorably by the 1-6 following vote: Yeas 10, Nays 0; April 25, 1997, sent to printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to a loan the proceeds of which are used to purchase an 1-10 interest in a certain trust or entity that owns real property 1-11 located outside the United States. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Article 1.07, Title 79, Revised Statutes (Article 1-14 5069-1.07, Vernon's Texas Civil Statutes), is amended by adding 1-15 Subsection (g) to read as follows: 1-16 (g) A loan, the proceeds of which are used primarily to 1-17 purchase an interest in a trust or other entity that has as its 1-18 principal asset real property located outside the United States, is 1-19 not subject to Subtitle 2 of this Title. The loan is subject to 1-20 the interest rate limitations of Article 1.04 of this Title. The 1-21 loan must comply with the laws of this state governing collateral 1-22 that may be used to secure the loan. For the purpose of 1-23 determining the rate of interest on the loan, all interest 1-24 contracted for, charged, or received shall be amortized, prorated, 1-25 allocated, and spread over the full stated term of the loan. The 1-26 principal amount of the loan may include any charge permitted for a 1-27 loan secured by an interest in real property that is not classified 1-28 as homestead property. 1-29 SECTION 2. The importance of this legislation and the 1-30 crowded condition of the calendars in both houses create an 1-31 emergency and an imperative public necessity that the 1-32 constitutional rule requiring bills to be read on three several 1-33 days in each house be suspended, and this rule is hereby suspended, 1-34 and that this Act take effect and be in force from and after its 1-35 passage, and it is so enacted. 1-36 * * * * *