By Solomons                                           H.B. No. 1086
         76R3619 PAM-F                           
                                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 documents state that the
1-13     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 a retail installment lien.
1-18           Sec. 62.003.  CONVERSION OF LIEN FROM PERSONAL PROPERTY LIEN
1-19     TO REAL PROPERTY LIEN.  When the manufactured home converts to real
1-20     property as provided by Section 2.001(b), the lien on the property:
1-21                 (1)  is converted to a purchase money lien on real
1-22     property by operation of law; and
1-23                 (2)  exists independently of any existing lien on the
1-24     real property to which the home is permanently attached.
 2-1           Sec. 62.004.  REFINANCING OF LIEN.  (a)  A person who
 2-2     provides funds to refinance a lien secured by a manufactured home
 2-3     is subrogated to the lien position of the previous lienholder.
 2-4           (b)  If the holder of a lien secured by a manufactured home
 2-5     transfers loan documents to a lender refinancing the lien, that
 2-6     lender and a title insurance company, title insurance agent or
 2-7     direct operation, or attorney to whom the loan documents are
 2-8     delivered holds the loan documents in trust for that lienholder.
 2-9     In this subsection, "direct operation" has the meaning assigned by
2-10     Article 9.02, Insurance Code.
2-11           (c)  A lien that is converted to a purchase money lien on
2-12     real property under Section 62.003 may be refinanced with another
2-13     lien on the real property to which the manufactured home is
2-14     permanently attached.
2-15           SECTION 2.  This Act takes effect September 1, 1999.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended.