By:  Carona                                           S.J.R. No. 43
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
 1-1                           SENATE JOINT RESOLUTION
 1-2     proposing a constitutional amendment simplifying requirements for
 1-3     certain refinances of home equity loans without additional cash
 1-4     advances.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 50(f), Article XVI, Texas Constitution,
 1-7     is amended to read as follows:
 1-8           (f)  A refinance of debt secured by the homestead, any
 1-9     portion of which is an extension of credit described by Subsection
1-10     (a)(6) of this section, may not be secured by a valid lien against
1-11     the homestead unless either:
1-12                 (1)  the refinance of the debt is an extension of
1-13     credit described by Subsections (a)(6) or (a)(7) of this section,
1-14     or
1-15                 (2)  the refinance meets all of the following
1-16     conditions;
1-17                       (A)  property securing the refinanced debt is not
1-18     subject to one or more valid and enforceable prior contractual
1-19     liens or security interests,
1-20                       (B)  the refinance is not closed before one year
1-21     after the date that the extension of credit described by Subsection
1-22     (a)(6) of this section was closed, and
 2-1                       (C)  the extension of credit does not include the
 2-2     advance of any additional funds except for actual costs and
 2-3     reserves required by the lender to refinance such debt.
 2-4           A lien securing a refinance made under the authority of this
 2-5     Subsection (f)(2) will be deemed to be a lien made under Subsection
 2-6     (a)(4) for purposes of this Section.
 2-7           SECTION 2.  This proposed constitutional amendment shall be
 2-8     submitted to the voters at an election to be held November 6, 2001.
 2-9     The ballot shall be printed to permit voting for or against the
2-10     proposition:  "The constitutional amendment simplifying
2-11     requirements for certain refinances of home equity loans without
2-12     additional cash advances."