By Solomons                                          H.J.R. No. 101
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment simplifying requirements for
 1-2     certain refinances of home equity loans without additional cash
 1-3     advances.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 50(f), Article XVI, Texas Constitution, is
 1-6     amended to read as follows:
 1-7           (f)  A refinance of debt secured by the homestead, any
 1-8     portion of which is an extension of credit described by Subsection
 1-9     (a)(6) of this section, may not be secured by a valid lien against
1-10     the homestead unless either:
1-11                 (1)  the refinance of the debt is an extension of
1-12     credit described by Subsections (a)(6) or (a)(7) of this section,
1-13     or
1-14                 (2)  the refinance meets all of the following
1-15     conditions:
1-16                       (A)  property securing the refinanced debt is not
1-17     subject to one or more valid and enforceable prior contractual
1-18     liens or security interests,
1-19                       (B)  the refinance is not closed before one year
1-20     after the date that the extension of credit described by Subsection
1-21     (a)(6) of this section was closed, and
1-22                       (C)  the extension of credit does not include the
1-23     advance of any additional funds except for actual costs and
 2-1     reserves required by the lender to refinance such debt.
 2-2           A lien securing a refinance made under the authority of this
 2-3     Subsection (f)(2) will be deemed to be a lien made under Subsection
 2-4     (a)(4) for purposes of this Section.
 2-5           SECTION 2.  This proposed constitutional amendment shall be
 2-6     submitted to the voters at an election to be held November 6, 2001.
 2-7     The ballot shall be printed to permit voting for or against the
 2-8     proposition:  "The constitutional amendment simplifying
 2-9     requirements for certain refinances of home equity loans without
2-10     additional cash advances."