By Marchant                                     H.B. No. 1375

      75R5426 CLG-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the definition of instrument for purposes of a secured

 1-3     transaction.

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

 1-5           SECTION 1.  Section 9.105(a)(9), Business & Commerce Code, is

 1-6     amended to read as follows:

 1-7                 (9)  "Instrument" means a negotiable instrument

 1-8     (defined in Section 3.104), a certificate of deposit (defined in

 1-9     Section 3.104) that is not a negotiable instrument, including a

1-10     receipt for a book  entry certificate of deposit, or any other

1-11     writing which evidences a right to the payment of money and is not

1-12     itself a security agreement or lease and is of a type which is in

1-13     ordinary course of business transferred by delivery with any

1-14     necessary indorsement or assignment, but the term does not include

1-15     investment property.

1-16           SECTION 2.  This Act takes effect September 1, 1997, and

1-17     applies only to a certificate of deposit that is issued on or after

1-18     that date.  A certificate of deposit that is issued before the

1-19     effective date of this Act is governed by the law in effect on the

1-20     date on which the certificate of deposit was issued, and the former

1-21     law is continued in effect for that purpose.

1-22           SECTION 3.  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.