79R2946 AJA-D

By:  Dutton                                                       H.B. No. 927



A BILL TO BE ENTITLED

AN ACT

relating to the foreclosure of certain liens on real property.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 202, Property Code, is amended by adding 
Section 202.010 to read as follows:
	Sec. 202.010.  FORECLOSURE OF CERTAIN LIENS.  A restrictive 
covenant may not be adopted that places a lien on real property to 
secure payment of a debt created by the covenant unless the covenant 
exempts a homestead, as defined by Section 41.002, from foreclosure 
of the lien.
	SECTION 2.  Section 202.010, Property Code, as added by this 
Act, applies to a restrictive covenant adopted on or after the 
effective date of this Act.  A restrictive covenant adopted before 
the effective date of this Act is governed by the law in effect 
immediately before that date, and that law is continued in effect 
for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.