By Naishtat                                           H.B. No. 1233
         77R1306 MTB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the prepayment of funeral services by a guardian of the
 1-3     estate of a ward.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 774(a), Texas Probate Code, is amended to
 1-6     read as follows:
 1-7           (a)  On application, and if authorized by an order, the
 1-8     guardian of the estate may renew or extend any obligation owed by
 1-9     or to the ward.  On written application to the court and when a
1-10     guardian of the estate deems it is in the best interest of the
1-11     estate, the guardian may, if authorized by an order of the court:
1-12                 (1)  purchase or exchange property;
1-13                 (2)  take a claim or property for the use and benefit
1-14     of the estate in payment of a debt due or owing to the estate;
1-15                 (3)  compound a bad or doubtful debt due or owing to
1-16     the estate;
1-17                 (4)  make a compromise or a settlement in relation to
1-18     property or a claim in dispute or litigation;
1-19                 (5)  compromise or pay in full any secured claim that
1-20     has been allowed and approved as required by law against the estate
1-21     by conveying to the holder of the secured claim the real estate or
1-22     personalty securing the claim, in full payment, liquidation, and
1-23     satisfaction of the claim, and in consideration of cancellation of
1-24     a note, deed of trust, mortgage, chattel mortgage, or other
 2-1     evidence of a lien that secures the payment of the claim;  [and]
 2-2                 (6)  abandon worthless or burdensome property and the
 2-3     administration of that property.  Abandoned real or personal
 2-4     property may be foreclosed on by a secured party, trustee, or
 2-5     mortgagee without further order of the court; and
 2-6                 (7)  purchase a prepaid funeral benefits contract.
 2-7           SECTION 2. This Act takes effect September 1, 2001.