SRC-JXG S.J.R. 14 76(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 14
76R3831 DWS-FBy: Nelson
         Technology and Business Growth
2/22/1999
            As Filed


DIGEST 

Currently, the collateral used to obtain a home equity loan is restricted
to property which constitutes a borrower's homestead. The Texas
Constitution and the Property Code define an urban homestead as containing
no more than one acre of land. Texas has many areas in which a homeowner's
primary residence is located in an urban area on parcels of land larger
than one acre. This joint resolution would propose a constitutional
amendment to permit access to a home equity loan for a borrower whose
homestead is located on property exceeding one acre in an urban area. 
  
PURPOSE

As proposed, S.J.R. 14 proposes a constitutional amendment to permit access
to a home equity loan for a borrower whose homestead is located on property
exceeding one acre in an urban area. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 50(a), Article XVI, Texas Constitution, to
provide that the homestead of a family or of a single adult person shall be
protected from forced sale for the payment of all debts, except for an
extension of credit that is of an amount that when added to the total of
all other indebtedness secured by valid encumbrances of record against the
security, rather than homestead, does not exceed 80 percent of the fair
market value of the security or is not secured by additional real or
personal property other than any real property that is part of one or more
lots in a city, town, or village, and includes all or part of the
homestead, and any improvements on the property. Makes conforming changes. 

SECTION 2. Amends Section 50(g), Article XVI, Texas Constitution, to set
forth a written notice to be used to secure an extension of credit. Makes
conforming changes. 

SECTION 3.  Section 50(h), Article XVI, Texas Constitution, to make a
conforming change. 

SECTION 4. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999. Sets forth the
required language for the ballot.