By Solomons H.B. No. 1086 Substitute the following for H.B. No. 1086: By Solomons C.S.H.B. No. 1086 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to liens on manufactured homes. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle B, Title 5, Property Code, is amended by 1-5 adding Chapter 62 to read as follows: 1-6 CHAPTER 62. MANUFACTURED HOME LIEN 1-7 Sec. 62.001. MANUFACTURED HOME. In this chapter, 1-8 "manufactured home" has the meaning assigned by the Texas 1-9 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas 1-10 Civil Statutes). 1-11 Sec. 62.002. APPLICABILITY. This chapter applies only to a 1-12 lien on a manufactured home if the loan or credit advance documents 1-13 state or indicate that the lien: 1-14 (1) is or is in the nature of a vendor's lien; 1-15 (2) is or is in the nature of a purchase money lien; 1-16 or 1-17 (3) is or is in the nature of a retail installment 1-18 lien. 1-19 Sec. 62.003. CONVERSION OF LIEN FROM PERSONAL PROPERTY LIEN 1-20 TO REAL PROPERTY LIEN. When the manufactured home converts to real 1-21 property as provided by Section 2.001(b), the lien on the property: 1-22 (1) is converted to a purchase money lien on real 1-23 property by operation of law; and 1-24 (2) exists independently of any existing lien on the 2-1 real property to which the home is permanently attached. 2-2 Sec. 62.004. REFINANCING OF LIEN. (a) A person who 2-3 provides funds to refinance a lien secured by a manufactured home 2-4 is subrogated to the lien position of the previous lienholder. 2-5 (b) If the holder of a lien secured by a manufactured home 2-6 transfers loan or credit advance documents to a lender refinancing 2-7 the lien, that lender and a title insurance company, title 2-8 insurance agent or direct operation, or attorney to whom the loan 2-9 or credit advance documents are delivered holds the loan or credit 2-10 advance documents in trust for that lienholder. In this 2-11 subsection, "direct operation" has the meaning assigned by Article 2-12 9.02, Insurance Code. 2-13 (c) A lien that is converted to a purchase money lien on 2-14 real property under Section 62.003 may be refinanced with another 2-15 lien on the real property to which the manufactured home is 2-16 permanently attached as provided by Section 2.001(b). 2-17 SECTION 2. This Act takes effect September 1, 1999. 2-18 SECTION 3. The importance of this legislation and the 2-19 crowded condition of the calendars in both houses create an 2-20 emergency and an imperative public necessity that the 2-21 constitutional rule requiring bills to be read on three several 2-22 days in each house be suspended, and this rule is hereby suspended.