SRC-MWN H.B. 1995 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1995
77R2009 PAM-FBy: Marchant (Carona)
Business & Commerce
5/5/2001
Engrossed


DIGEST AND PURPOSE 

Current law provides that encumbrances may be properly fixed on homestead
property for purchase money, taxes on property, work and material used in
constructing improvements on the property, an owelty of partition imposed
against the property, and for the refinance of a lien against a homestead.
However, the Texas Constitution also provides additional conditions under
which an encumbrance may be properly fixed on homestead property or an
extension of credit constituting a reverse mortgage. H.B.1995 provides that
an encumbrance may be properly fixed on homestead property for an extension
of credit that meets the requirements of the Texas Constitution or a
reverse mortgage that meets the requirements of the Texas Constitution.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 41.001(b), Property Code, to authorize
encumbrances to be properly fixed on homestead property for certain
purposes. 

SECTION 2. Effective date: September 1, 2001.