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.