78R2639 QS-D

By:  Carona                                                     S.J.R. No. 17 



A JOINT RESOLUTION

proposing a constitutional amendment simplifying requirements for 
certain refinances of home equity loans without additional cash 
advances.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Section 50, Article XVI, Texas Constitution, is 
amended by amending Subsection (f) and adding Subsection (t) to 
read as follows:
	(f)  A refinance of debt secured by the homestead, any 
portion of which is an extension of credit described by Subsection 
(a)(6) of this section, may not be secured by a valid lien against 
the homestead unless:
		(1)  the refinance of the debt is an extension of credit 
described by Subsection (a)(6) or (a)(7) of this section; or
		(2)  the new loan resulting from the refinance of the 
debt meets all of the following conditions:
			(A)  no valid and enforceable contractual liens or 
security interests have priority over the lien securing the new 
loan;
			(B)  the new loan is not closed before the first 
anniversary of the date the extension of credit described by 
Subsection (a)(6) of this section was closed; and
			(C)  the new loan does not include the advance of 
any additional funds other than actual costs and reserves required 
by the lender in order to make the new loan.
	(t)  A refinance of debt under Subsection (f)(2) of this 
section is considered to be a refinance of a lien against a 
homestead under Subsection (a)(4) of this section and is not 
governed by the law specifically applicable to a debt described by 
Subsection (a)(6) of this section.
	SECTION 2.  This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 4, 2003.  
The ballot shall be printed to permit voting for or against the 
proposition:  "The constitutional amendment simplifying 
requirements for certain refinances of home equity loans without 
additional cash advances."