H.B. No. 2991
 
 
 
 
AN ACT
  relating to a determination of the reasonable relation of certain
  transactions to particular jurisdictions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 271.004, Business & Commerce Code, is
  amended by amending Subsection (b) and adding Subsection (c) to
  read as follows:
         (b)  A transaction bearing [bears] a reasonable relation to a
  particular jurisdiction includes [if]:
               (1)  a transaction in which:
                     (A)  a party to the transaction is a resident of
  that jurisdiction;
                     (B) [(2)]  a party to the transaction has the
  party's place of business or, if that party has more than one place
  of business, the party's chief executive office or an office from
  which the party conducts a substantial part of the negotiations
  relating to the transaction, in that jurisdiction;
                     (C) [(3)]  all or part of the subject matter of
  the transaction is located in that jurisdiction;
                     (D) [(4)]  a party to the transaction is required
  to perform in that jurisdiction a substantial part of the party's
  obligations relating to the transaction, such as delivering
  payments; [or]
                     (E) [(5)]  a substantial part of the negotiations
  relating to the transaction occurred in or from that jurisdiction
  and an agreement relating to the transaction was signed in that
  jurisdiction by a party to the transaction; or
                     (F)  all or part of the subject matter of the
  transaction is related to the governing documents or internal
  affairs of an entity formed under the laws of that jurisdiction,
  such as:
                           (i)  an agreement among members or owners of
  the entity, an agreement or option to acquire a membership or
  ownership interest in the entity, and the conversion of debt or
  other securities into an ownership interest in the entity; and
                           (ii)  any other matter relating to rights or
  obligations with respect to the entity's membership or ownership
  interests; and
               (2)  a transaction in which:
                     (A)  all or part of the subject matter of the
  transaction is a loan or other extension of credit in which a party
  lends, advances, borrows, or receives, or is obligated to lend or
  advance or entitled to borrow or receive, money or credit with an
  aggregate value of at least $25 million;
                     (B)  at least three financial institutions or
  other lenders or providers of credit are parties to the
  transaction;
                     (C)  the particular jurisdiction is in the United
  States; and
                     (D)  a party to the transaction has more than one
  place of business and has an office in that particular
  jurisdiction.
         (c)  If a transaction bears a reasonable relation to a
  particular jurisdiction at the time the parties enter into the
  transaction, the transaction shall continue to bear a reasonable
  relation to that jurisdiction regardless of:
               (1)  any subsequent change in facts or circumstances
  with respect to the transaction, the subject matter of the
  transaction, or any party to the transaction; or
               (2)  any modification, amendment, renewal, extension,
  or restatement of any agreement relating to the transaction.
         SECTION 2.  The changes in law made by this Act apply only to
  a transaction entered into on or after the effective date of this
  Act. A transaction entered into before the effective date of this
  Act is governed by the law in effect on the date the transaction was
  entered into, and the former law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2991 was passed by the House on April
  20, 2011, by the following vote:  Yeas 148, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2991 was passed by the Senate on May
  10, 2011, by the following vote:  Yeas 31, Nays 0
  .
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor