1-1     By:  Naishtat (Senate Sponsor - Moncrief)             H.B. No. 1233
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on
 1-4     Jurisprudence; May 1, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 1, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the prepayment of funeral services by a guardian of the
 1-9     estate of a ward.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Section 774(a), Texas Probate Code, is amended to
1-12     read as follows:
1-13           (a)  On application, and if authorized by an order, the
1-14     guardian of the estate may renew or extend any obligation owed by
1-15     or to the ward.  On written application to the court and when a
1-16     guardian of the estate deems it is in the best interest of the
1-17     estate, the guardian may, if authorized by an order of the court:
1-18                 (1)  purchase or exchange property;
1-19                 (2)  take a claim or property for the use and benefit
1-20     of the estate in payment of a debt due or owing to the estate;
1-21                 (3)  compound a bad or doubtful debt due or owing to
1-22     the estate;
1-23                 (4)  make a compromise or a settlement in relation to
1-24     property or a claim in dispute or litigation;
1-25                 (5)  compromise or pay in full any secured claim that
1-26     has been allowed and approved as required by law against the estate
1-27     by conveying to the holder of the secured claim the real estate or
1-28     personalty securing the claim, in full payment, liquidation, and
1-29     satisfaction of the claim, and in consideration of cancellation of
1-30     a note, deed of trust, mortgage, chattel mortgage, or other
1-31     evidence of a lien that secures the payment of the claim;  [and]
1-32                 (6)  abandon worthless or burdensome property and the
1-33     administration of that property.  Abandoned real or personal
1-34     property may be foreclosed on by a secured party, trustee, or
1-35     mortgagee without further order of the court; and
1-36                 (7)  purchase a prepaid funeral benefits contract.
1-37           SECTION 2. This Act takes effect September 1, 2001.
1-38                                  * * * * *