1-1     By:  Solomons (Senate Sponsor - Shapleigh)            H.B. No. 1086
 1-2           (In the Senate - Received from the House April 29, 1999;
 1-3     April 30, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 14, 1999, reported favorably by the
 1-5     following vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to liens on manufactured homes.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subtitle B, Title 5, Property Code, is amended by
1-11     adding Chapter 62 to read as follows:
1-12                     CHAPTER 62.  MANUFACTURED HOME LIEN
1-13           Sec. 62.001.  MANUFACTURED HOME.  In this chapter,
1-14     "manufactured home" has the meaning assigned by the Texas
1-15     Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
1-16     Civil Statutes).
1-17           Sec. 62.002.  APPLICABILITY.  This chapter applies only to a
1-18     lien on a manufactured home if the loan or credit advance documents
1-19     state or indicate that the lien:
1-20                 (1)  is or is in the nature of a vendor's lien;
1-21                 (2)  is or is in the nature of a purchase money lien;
1-22     or
1-23                 (3)  is or is in the nature of a retail installment
1-24     lien.
1-25           Sec. 62.003.  CONVERSION OF LIEN FROM PERSONAL PROPERTY LIEN
1-26     TO REAL PROPERTY LIEN.  When the manufactured home converts to real
1-27     property as provided by Section 2.001(b), the lien on the property:
1-28                 (1)  is converted to a purchase money lien on real
1-29     property by operation of law; and
1-30                 (2)  exists independently of any existing lien on the
1-31     real property to which the home is permanently attached.
1-32           Sec. 62.004.  REFINANCING OF LIEN.  (a)  A person who
1-33     provides funds to refinance a lien secured by a manufactured home
1-34     is subrogated to the lien position of the previous lienholder.
1-35           (b)  If the holder of a lien secured by a manufactured home
1-36     transfers loan or credit advance documents to a lender refinancing
1-37     the lien, that lender and a title insurance company, title
1-38     insurance agent or direct operation, or attorney to whom the loan
1-39     or credit advance documents are delivered holds the loan or credit
1-40     advance documents in trust for that lienholder.  In this
1-41     subsection, "direct operation" has the meaning assigned by Article
1-42     9.02, Insurance Code.
1-43           (c)  A lien that is converted to a purchase money lien on
1-44     real property under Section 62.003 may be refinanced with another
1-45     lien on the real property to which the manufactured home is
1-46     permanently attached as provided by Section 2.001(b).
1-47           SECTION 2.  This Act takes effect September 1, 1999.
1-48           SECTION 3.  The importance of this legislation and the
1-49     crowded condition of the calendars in both houses create an
1-50     emergency and an imperative public necessity that the
1-51     constitutional rule requiring bills to be read on three several
1-52     days in each house be suspended, and this rule is hereby suspended.
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