This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                

79R7788 HLT-D

By:  Davis of Dallas                                              H.B. No. 2106



A BILL TO BE ENTITLED

AN ACT

relating to protections for certain customers of a financial 
institution.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle Z, Title 3, Finance Code, is amended by 
adding Chapter 279 to read as follows:

CHAPTER 279. PROTECTIONS FOR CERTAIN CUSTOMERS OF A FINANCIAL 
INSTITUTION
	Sec. 279.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Financial institution" means a bank, savings 
association, savings bank, person licensed under Chapter 342, 
credit union, or mortgage lending company maintaining an office, 
branch, or agency office in this state.
		(2)  "Mortgage" includes a deed of trust.                              
	Sec. 279.002.  APPLICABILITY.  This chapter applies to the 
spouse of a person who is the mortgagor on a mortgage relating to a 
loan made by a financial institution.
	Sec. 279.003.  DUTIES OF A FINANCIAL INSTITUTION.  
Notwithstanding any other law, a financial institution shall:
		(1)  file, on the request of and on behalf of a spouse 
who has presented legitimate proof of an ownership interest in the 
secured property, a statement in real property records where any 
documents related to the mortgage are filed of the spouse's 
potential claim to interest in the property;
		(2)  notify any spouse before refinancing a loan made 
by the financial institution that is secured by a residential 
homestead; and
		(3)  release information regarding a loan to a person 
who is liable for payment of the loan but whose name does not appear 
as a debtor on the loan documents.
	Sec. 279.004.  PROHIBITED ACTS.  Notwithstanding any other 
law, a financial institution may not:
		(1)  send any correspondence concerning a request to 
refinance a loan secured by a residential homestead or an 
application for a home equity loan to a post office box; or
		(2)  cash a check on a joint checking account at the 
financial institution unless both parties to the account are 
present or the signature of the party not present is verified by 
comparing it to a signature on file with the financial institution, 
if an account holder has requested that the financial institution 
not do so.
	Sec. 279.005.  EFFECT OF RESTRAINING ORDER.  While a 
restraining order in connection with a divorce proceeding is in 
effect, a financial institution may not disburse any assets of the 
respondent to the restraining order without the consent of the 
petitioner named in the restraining order.
	Sec. 279.006.  DAMAGES.  A person damaged by a violation of 
this chapter is entitled to:
		(1)  actual damages;                                                   
		(2)  reasonable attorney's fees; and                                   
		(3)  court costs.                                                      
	SECTION 2.  This Act takes effect September 1, 2005.