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. 1-53 * * * * *