79R1125 DWS-F
By: Hochberg H.J.R. No. 21
A JOINT RESOLUTION
proposing a constitutional amendment authorizing line-of-credit
advances under a reverse mortgage.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 50(p), Article XVI, Texas Constitution,
is amended to read as follows:
(p) The advances made on a reverse mortgage loan under which
more than one advance is made must be made according to the terms
established by the loan documents by one or more of the following
methods:
(1) an initial advance at any time and future advances
at regular intervals;
(2) an initial advance at any time and future advances
at regular intervals in which the amounts advanced may be reduced,
for one or more advances, at the request of the borrower; [or]
(3) an initial advance at any time and future advances
at times and in amounts requested by the borrower until the credit
limit established by the loan documents is reached;
(4) an initial advance at any time, future advances at
times and in amounts requested by the borrower until the credit
limit established by the loan documents is reached, and subsequent
advances at times and in amounts requested by the borrower to the
extent that the outstanding balance is repaid; or
(5) at any time by the lender, on behalf of the
borrower, if the borrower fails to timely pay any of the following
that the borrower is obligated to pay under the loan documents to
the extent necessary to protect the lender's interest in or the
value of the homestead property:
(A) taxes;
(B) insurance;
(C) costs of repairs or maintenance performed by
a person or company that is not an employee of the lender or a person
or company that directly or indirectly controls, is controlled by,
or is under common control with the lender;
(D) assessments levied against the homestead
property; and
(E) any lien that has, or may obtain, priority
over the lender's lien as it is established in the loan documents.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2005.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment authorizing
line-of-credit advances under a reverse mortgage."