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.