Amend CSSJR 42 as follows:
(1) In SECTION 1 of the resolution, in Section
50(a)(6)(M)(ii), Article XVI, Texas Constitution (committee
printing page 2, line 54), between "property" and the semicolon,
insert ", except a refinance described by Paragraph (Q)(x)(f) of
this subdivision".
(2) In SECTION 1 of the resolution, strike Section
50(a)(6)(Q)(x), Article XVI, Texas Constitution (committee
printing page 3, line 46 through page 4, line 29) and substitute the
following:
(x) except as provided by Subparagraph (ix)
of this paragraph, the lender or any holder of the note for the
extension of credit shall forfeit all principal and interest of the
extension of credit if the lender or holder fails to comply with the
lender's or holder's obligations under the extension of credit and
fails to correct the failure to comply not later than the 60th day
after the date [within a reasonable time after] the lender or holder
is notified by the borrower of the lender's failure to comply by:
(a) paying to the owner an amount
equal to any overcharge paid by the owner under or related to the
extension of credit if the owner has paid an amount that exceeds an
amount stated in the applicable Paragraph (E), (G), or (O) of this
subdivision;
(b) sending the owner a written
acknowledgement that the lien is valid only in the amount that the
extension of credit does not exceed the percentage described by
Paragraph (B) of this subdivision, if applicable, or is not secured
by property described under Paragraph (H) or (I) of this
subdivision, if applicable;
(c) sending the owner a written notice
modifying any other amount, percentage, term, or other provision
prohibited by this section to a permitted amount, percentage, term,
or other provision and adjusting the account of the borrower to
ensure that the borrower is not required to pay more than an amount
permitted by this section and is not subject to any other term or
provision prohibited by this section;
(d) delivering the required documents
to the borrower if the lender fails to comply with Subparagraph (v)
of this paragraph or obtaining the appropriate signatures if the
lender fails to comply with Subparagraph (ix) of this paragraph;
(e) sending the owner a written
acknowledgement, if the failure to comply is prohibited by
Paragraph (K) of this subdivision, that the accrual of interest and
all of the owner's obligations under the extension of credit are
abated while any prior lien prohibited under Paragraph (K) remains
secured by the homestead; or
(f) if the failure to comply cannot be
cured under Subparagraphs (x)(a)-(e) of this paragraph, curing the
failure to comply by a refund or credit to the owner of $1,000 and
offering the owner the right to refinance the extension of credit
with the lender or holder for the remaining term of the loan at no
cost to the owner on the same terms, including interest, as the
original extension of credit with any modifications necessary to
comply with this section or on terms on which the owner and the
lender or holder otherwise agree that comply with this section; and
(xi) the lender or any holder of the note
for the extension of credit shall forfeit all principal and
interest of the extension of credit if the extension of credit is
made by a person other than a person described under Paragraph (P)
of this subdivision or if the lien was not created under a written
agreement with the consent of each owner and each owner's spouse,
unless each owner and each owner's spouse who did not initially
consent subsequently consents;