A JOINT RESOLUTION
1-1 proposing a constitutional amendment permitting an encumbrance
1-2 against homestead property for certain extensions of equity credit.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 50, Article XVI, Texas Constitution, is
1-5 amended to read as follows:
1-6 Sec. 50. (a) The homestead of a family, or of a single
1-7 adult person, shall be, and is hereby protected from forced sale,
1-8 for the payment of all debts except for:
1-9 (1) the purchase money thereof, or a part of such
1-10 purchase money;
1-11 (2)[,] the taxes due thereon;
1-12 (3)[,] an owelty of partition imposed against the
1-13 entirety of the property by a court order or by a written agreement
1-14 of the parties to the partition, including a debt of one spouse in
1-15 favor of the other spouse resulting from a division or an award of
1-16 a family homestead in a divorce proceeding;
1-17 (4)[,] the refinance of a lien against a homestead,
1-18 including a federal tax lien resulting from the tax debt of both
1-19 spouses, if the homestead is a family homestead, or from the tax
1-20 debt of the owner;
1-21 (5)[, or for] work and material used in constructing
1-22 new improvements thereon, if contracted for in writing, or work and
1-23 material used to repair or renovate existing improvements thereon
1-24 if:
2-1 (A) [and in this last case only when] the work
2-2 and material are contracted for in writing, with the consent of
2-3 both spouses, in the case of a family homestead, given in the same
2-4 manner as is required in making a sale and conveyance of the
2-5 homestead;
2-6 (B) the contract for the work and material is
2-7 not executed by the owner or the owner's spouse before the 12th day
2-8 after the owner makes written application for any extension of
2-9 credit for the work and material, unless the work and material are
2-10 necessary to complete immediate repairs to conditions on the
2-11 homestead property that materially affect the health or safety of
2-12 the owner or person residing in the homestead and the owner of the
2-13 homestead acknowledges such in writing;
2-14 (C) the contract for the work and material
2-15 expressly provides that the owner may rescind the contract without
2-16 penalty or charge within three days after the execution of the
2-17 contract by all parties, unless the work and material are necessary
2-18 to complete immediate repairs to conditions on the homestead
2-19 property that materially affect the health or safety of the owner
2-20 or person residing in the homestead and the owner of the homestead
2-21 acknowledges such in writing; and
2-22 (D) the contract for the work and material is
2-23 executed by the owner and the owner's spouse only at the office of
2-24 a third-party lender making an extension of credit for the work and
2-25 material, an attorney at law, or a title company;
2-26 (6) an extension of credit that:
2-27 (A) is secured by a voluntary lien on the
3-1 homestead created under a written agreement with the consent of
3-2 each owner and each owner's spouse;
3-3 (B) is of a principal amount that when added to
3-4 the aggregate total of the outstanding principal balances of all
3-5 other indebtedness secured by valid encumbrances of record against
3-6 the homestead does not exceed 80 percent of the fair market value
3-7 of the homestead on the date the extension of credit is made;
3-8 (C) is without recourse for personal liability
3-9 against each owner and the spouse of each owner, unless the owner
3-10 or spouse obtained the extension of credit by actual fraud;
3-11 (D) is secured by a lien that may be foreclosed
3-12 upon only by a court order;
3-13 (E) does not require the owner or the owner's
3-14 spouse to pay, in addition to any interest, fees to any person that
3-15 are necessary to originate, evaluate, maintain, record, insure, or
3-16 service the extension of credit that exceed, in the aggregate,
3-17 three percent of the original principal amount of the extension of
3-18 credit;
3-19 (F) is not a form of open-end account that may
3-20 be debited from time to time or under which credit may be extended
3-21 from time to time;
3-22 (G) is payable in advance without penalty or
3-23 other charge;
3-24 (H) is not secured by any additional real or
3-25 personal property other than the homestead;
3-26 (I) is not secured by homestead property
3-27 designated for agricultural use as provided by statutes governing
4-1 property tax, unless such homestead property is used primarily for
4-2 the production of milk;
4-3 (J) may not be accelerated because of a decrease
4-4 in the market value of the homestead or because of the owner's
4-5 default under other indebtedness not secured by a prior valid
4-6 encumbrance against the homestead;
4-7 (K) is the only debt secured by the homestead at
4-8 the time the extension of credit is made unless the other debt was
4-9 made for a purpose described by Subsections (a)(1)-(a)(5) of this
4-10 section;
4-11 (L) is scheduled to be repaid in substantially
4-12 equal successive monthly installments beginning no later than two
4-13 months from the date the extension of credit is made, each of which
4-14 equals or exceeds the amount of accrued interest as of the date of
4-15 the scheduled installment;
4-16 (M) is closed not before:
4-17 (i) the 12th day after the later of the
4-18 date that the owner of the homestead submits an application to the
4-19 lender for the extension of credit or the date that the lender
4-20 provides the owner a copy of the notice prescribed by Subsection
4-21 (g) of this section; and
4-22 (ii) the first anniversary of the closing
4-23 date of any other extension of credit described by Subsection
4-24 (a)(6) of this section secured by the same homestead property;
4-25 (N) is closed only at the office of the lender,
4-26 an attorney at law, or a title company;
4-27 (O) permits a lender to contract for and receive
5-1 any fixed or variable rate of interest authorized under statute;
5-2 (P) is made by one of the following that has not
5-3 been found by a federal regulatory agency to have engaged in the
5-4 practice of refusing to make loans because the applicants for the
5-5 loans reside or the property proposed to secure the loans is
5-6 located in a certain area:
5-7 (i) a bank, savings and loan association,
5-8 savings bank, or credit union doing business under the laws of this
5-9 state or the United States;
5-10 (ii) a federally chartered lending
5-11 instrumentality or a person approved as a mortgagee by the United
5-12 States government to make federally insured loans;
5-13 (iii) a person licensed to make regulated
5-14 loans, as provided by statute of this state;
5-15 (iv) a person who sold the homestead
5-16 property to the current owner and who provided all or part of the
5-17 financing for the purchase; or
5-18 (v) a person who is related to the
5-19 homestead property owner within the second degree of affinity or
5-20 consanguinity; and
5-21 (Q) is made on the condition that:
5-22 (i) the owner of the homestead is not
5-23 required to apply the proceeds of the extension of credit to repay
5-24 another debt except debt secured by the homestead or debt to
5-25 another lender;
5-26 (ii) the owner of the homestead not assign
5-27 wages as security for the extension of credit;
6-1 (iii) the owner of the homestead not sign
6-2 any instrument in which blanks are left to be filled in;
6-3 (iv) the owner of the homestead not sign a
6-4 confession of judgment or power of attorney to the lender or to a
6-5 third person to confess judgment or to appear for the owner in a
6-6 judicial proceeding;
6-7 (v) the lender, at the time the extension
6-8 of credit is made, provide the owner of the homestead a copy of all
6-9 documents signed by the owner related to the extension of credit;
6-10 (vi) the security instruments securing the
6-11 extension of credit contain a disclosure that the extension of
6-12 credit is the type of credit defined by Section 50(a)(6), Article
6-13 XVI, Texas Constitution;
6-14 (vii) within a reasonable time after
6-15 termination and full payment of the extension of credit, the lender
6-16 cancel and return the promissory note to the owner of the homestead
6-17 and give the owner, in recordable form, a release of the lien
6-18 securing the extension of credit or a copy of an endorsement and
6-19 assignment of the lien to a lender that is refinancing the
6-20 extension of credit;
6-21 (viii) the owner of the homestead and any
6-22 spouse of the owner may, within three days after the extension of
6-23 credit is made, rescind the extension of credit without penalty or
6-24 charge;
6-25 (ix) the owner of the homestead and the
6-26 lender sign a written acknowledgment as to the fair market value of
6-27 the homestead property on the date the extension of credit is made;
7-1 and
7-2 (x) the lender or any holder of the note
7-3 for the extension of credit shall forfeit all principal and
7-4 interest of the extension of credit if the lender or holder fails
7-5 to comply with the lender's or holder's obligations under the
7-6 extension of credit within a reasonable time after the lender or
7-7 holder is notified by the borrower of the lender's failure to
7-8 comply; or
7-9 (7) a reverse mortgage.
7-10 (b) An [nor may the] owner or claimant of the property
7-11 claimed as homestead may not [, if married,] sell or abandon the
7-12 homestead without the consent of each owner and the [other] spouse
7-13 of each owner, given in such manner as may be prescribed by law.
7-14 (c) No mortgage, trust deed, or other lien on the homestead
7-15 shall ever be valid unless it secures a debt described by this
7-16 section, [except for a debt described by this section,] whether
7-17 such mortgage, [or] trust deed, or other lien, shall have been
7-18 created by the owner alone, or together with his or her spouse, in
7-19 case the owner is married. All pretended sales of the homestead
7-20 involving any condition of defeasance shall be void.
7-21 (d) A purchaser or lender for value without actual knowledge
7-22 may conclusively rely on an affidavit that designates other
7-23 property as the homestead of the affiant and that states that the
7-24 property to be conveyed or encumbered is not the homestead of the
7-25 affiant.
7-26 (e) A refinance of debt secured by a homestead and described
7-27 by any subsection under Subsections (a)(1)-(a)(5) that includes the
8-1 advance of additional funds may not be secured by a valid lien
8-2 against the homestead unless:
8-3 (1) the refinance of the debt is an extension of
8-4 credit described by Subsection (a)(6) of this section; or
8-5 (2) the advance of all the additional funds is for
8-6 reasonable costs necessary to refinance such debt or for a purpose
8-7 described by Subsection (a)(2), (a)(3), or (a)(5) of this section.
8-8 (f) A refinance of debt secured by the homestead, any
8-9 portion of which is an extension of credit described by Subsection
8-10 (a)(6) of this section, may not be secured by a valid lien against
8-11 the homestead unless the refinance of the debt is an extension of
8-12 credit described by Subsection (a)(6) of this section.
8-13 (g) An extension of credit described by Subsection (a)(6) of
8-14 this section may be secured by a valid lien against homestead
8-15 property if the extension of credit is not closed before the 12th
8-16 day after the lender provides the owner with the following written
8-17 notice on a separate instrument:
8-18 "NOTICE CONCERNING EXTENSIONS OF CREDIT
8-19 DEFINED BY SECTION 50(a)(6), ARTICLE XVI, TEXAS CONSTITUTION:
8-20 "SECTION 50(a)(6), ARTICLE XVI, OF THE TEXAS CONSTITUTION
8-21 ALLOWS CERTAIN LOANS TO BE SECURED AGAINST THE EQUITY IN YOUR HOME.
8-22 SUCH LOANS ARE COMMONLY KNOWN AS EQUITY LOANS. IF YOU DO NOT REPAY
8-23 THE LOAN OR IF YOU FAIL TO MEET THE TERMS OF THE LOAN, THE LENDER
8-24 MAY FORECLOSE AND SELL YOUR HOME. THE CONSTITUTION PROVIDES THAT:
8-25 "(A) THE LOAN MUST BE VOLUNTARILY CREATED WITH THE CONSENT
8-26 OF EACH OWNER OF YOUR HOME AND EACH OWNER'S SPOUSE;
8-27 "(B) THE PRINCIPAL LOAN AMOUNT AT THE TIME THE LOAN IS MADE
9-1 MUST NOT EXCEED AN AMOUNT THAT, WHEN ADDED TO THE PRINCIPAL
9-2 BALANCES OF ALL OTHER LIENS AGAINST YOUR HOME, IS MORE THAN 80
9-3 PERCENT OF THE FAIR MARKET VALUE OF YOUR HOME;
9-4 "(C) THE LOAN MUST BE WITHOUT RECOURSE FOR PERSONAL
9-5 LIABILITY AGAINST YOU AND YOUR SPOUSE UNLESS YOU OR YOUR SPOUSE
9-6 OBTAINED THIS EXTENSION OF CREDIT BY ACTUAL FRAUD;
9-7 "(D) THE LIEN SECURING THE LOAN MAY BE FORECLOSED UPON ONLY
9-8 WITH A COURT ORDER;
9-9 "(E) FEES AND CHARGES TO MAKE THE LOAN MAY NOT EXCEED 3
9-10 PERCENT OF THE LOAN AMOUNT;
9-11 "(F) THE LOAN MAY NOT BE AN OPEN-END ACCOUNT THAT MAY BE
9-12 DEBITED FROM TIME TO TIME OR UNDER WHICH CREDIT MAY BE EXTENDED
9-13 FROM TIME TO TIME;
9-14 "(G) YOU MAY PREPAY THE LOAN WITHOUT PENALTY OR CHARGE;
9-15 "(H) NO ADDITIONAL COLLATERAL MAY BE SECURITY FOR THE LOAN;
9-16 "(I) THE LOAN MAY NOT BE SECURED BY AGRICULTURAL HOMESTEAD
9-17 PROPERTY, UNLESS THE AGRICULTURAL HOMESTEAD PROPERTY IS USED
9-18 PRIMARILY FOR THE PRODUCTION OF MILK;
9-19 "(J) YOU ARE NOT REQUIRED TO REPAY THE LOAN EARLIER THAN
9-20 AGREED SOLELY BECAUSE THE FAIR MARKET VALUE OF YOUR HOME DECREASES
9-21 OR BECAUSE YOU DEFAULT ON ANOTHER LOAN THAT IS NOT SECURED BY YOUR
9-22 HOME;
9-23 "(K) ONLY ONE LOAN DESCRIBED BY SECTION 50(a)(6), ARTICLE
9-24 XVI, OF THE TEXAS CONSTITUTION MAY BE SECURED WITH YOUR HOME AT ANY
9-25 GIVEN TIME;
9-26 "(L) THE LOAN MUST BE SCHEDULED TO BE REPAID IN PAYMENTS
9-27 THAT EQUAL OR EXCEED THE AMOUNT OF ACCRUED INTEREST FOR EACH
10-1 PAYMENT PERIOD;
10-2 "(M) THE LOAN MAY NOT CLOSE BEFORE 12 DAYS AFTER YOU SUBMIT
10-3 A WRITTEN APPLICATION TO THE LENDER OR BEFORE 12 DAYS AFTER YOU
10-4 RECEIVE THIS NOTICE, WHICHEVER DATE IS LATER; AND IF YOUR HOME WAS
10-5 SECURITY FOR THE SAME TYPE OF LOAN WITHIN THE PAST YEAR, A NEW LOAN
10-6 SECURED BY THE SAME PROPERTY MAY NOT CLOSE BEFORE ONE YEAR HAS
10-7 PASSED FROM THE CLOSING DATE OF THE OTHER LOAN;
10-8 "(N) THE LOAN MAY CLOSE ONLY AT THE OFFICE OF THE LENDER,
10-9 TITLE COMPANY, OR AN ATTORNEY AT LAW;
10-10 "(O) THE LENDER MAY CHARGE ANY FIXED OR VARIABLE RATE OF
10-11 INTEREST AUTHORIZED BY STATUTE;
10-12 "(P) ONLY A LAWFULLY AUTHORIZED LENDER MAY MAKE LOANS
10-13 DESCRIBED BY SECTION 50(a)(6), ARTICLE XVI, OF THE TEXAS
10-14 CONSTITUTION; AND
10-15 "(Q) LOANS DESCRIBED BY SECTION 50(a)(6), ARTICLE XVI, OF
10-16 THE TEXAS CONSTITUTION MUST:
10-17 "(1) NOT REQUIRE YOU TO APPLY THE PROCEEDS TO ANOTHER
10-18 DEBT THAT IS NOT SECURED BY YOUR HOME OR TO ANOTHER DEBT TO THE
10-19 SAME LENDER;
10-20 "(2) NOT REQUIRE THAT YOU ASSIGN WAGES AS SECURITY;
10-21 "(3) NOT REQUIRE THAT YOU EXECUTE INSTRUMENTS WHICH
10-22 HAVE BLANKS LEFT TO BE FILLED IN;
10-23 "(4) NOT REQUIRE THAT YOU SIGN A CONFESSION OF
10-24 JUDGMENT OR POWER OF ATTORNEY TO ANOTHER PERSON TO CONFESS JUDGMENT
10-25 OR APPEAR IN A LEGAL PROCEEDING ON YOUR BEHALF;
10-26 "(5) PROVIDE THAT YOU RECEIVE A COPY OF ALL DOCUMENTS
10-27 YOU SIGN AT CLOSING;
11-1 "(6) PROVIDE THAT THE SECURITY INSTRUMENTS CONTAIN A
11-2 DISCLOSURE THAT THIS LOAN IS A LOAN DEFINED BY SECTION 50(a)(6),
11-3 ARTICLE XVI, OF THE TEXAS CONSTITUTION;
11-4 "(7) PROVIDE THAT WHEN THE LOAN IS PAID IN FULL, THE
11-5 LENDER WILL SIGN AND GIVE YOU A RELEASE OF LIEN OR AN ASSIGNMENT OF
11-6 THE LIEN, WHICHEVER IS APPROPRIATE;
11-7 "(8) PROVIDE THAT YOU MAY, WITHIN 3 DAYS AFTER
11-8 CLOSING, RESCIND THE LOAN WITHOUT PENALTY OR CHARGE;
11-9 "(9) PROVIDE THAT YOU AND THE LENDER ACKNOWLEDGE THE
11-10 FAIR MARKET VALUE OF YOUR HOME ON THE DATE THE LOAN CLOSES; AND
11-11 "(10) PROVIDE THAT THE LENDER WILL FORFEIT ALL
11-12 PRINCIPAL AND INTEREST IF THE LENDER FAILS TO COMPLY WITH THE
11-13 LENDER'S OBLIGATIONS."
11-14 If the discussions with the borrower are conducted primarily
11-15 in a language other than English, the lender shall, before closing,
11-16 provide an additional copy of the notice translated into the
11-17 written language in which the discussions were conducted.
11-18 (h) A lender or assignee for value may conclusively rely on
11-19 the written acknowledgment as to the fair market value of the
11-20 homestead property made in accordance with Subsection (a)(6)(Q)(ix)
11-21 of this section if:
11-22 (1) the value acknowledged to is the value estimate in
11-23 an appraisal or evaluation prepared in accordance with a state or
11-24 federal requirement applicable to an extension of credit under
11-25 Subsection (a)(6); and
11-26 (2) the lender or assignee does not have actual
11-27 knowledge at the time of the payment of value or advance of funds
12-1 by the lender or assignee that the fair market value stated in the
12-2 written acknowledgment was incorrect.
12-3 (i) This subsection shall not affect or impair any right of
12-4 the borrower to recover damages from the lender or assignee under
12-5 applicable law for wrongful foreclosure. A purchaser for value
12-6 without actual knowledge may conclusively presume that a lien
12-7 securing an extension of credit described by Subsection (a)(6) of
12-8 this section was a valid lien securing the extension of credit with
12-9 homestead property if:
12-10 (1) the security instruments securing the extension of
12-11 credit contain a disclosure that the extension of credit secured by
12-12 the lien was the type of credit defined by Section 50(a)(6),
12-13 Article XVI, Texas Constitution;
12-14 (2) the purchaser acquires the title to the property
12-15 pursuant to or after the foreclosure of the voluntary lien; and
12-16 (3) the purchaser is not the lender or assignee under
12-17 the extension of credit.
12-18 (j) Subsection (a)(6) and Subsections (e)-(i) of this
12-19 section are not severable, and none of those provisions would have
12-20 been enacted without the others. If any of those provisions are
12-21 held to be preempted by the laws of the United States, all of those
12-22 provisions are invalid. This subsection shall not apply to any
12-23 lien or extension of credit made after January 1, 1998, and before
12-24 the date any provision under Subsection (a)(6) or Subsections
12-25 (e)-(i) is held to be preempted.
12-26 (k) "Reverse mortgage" means an extension of credit:
12-27 (1) that is secured by a voluntary lien on homestead
13-1 property created by a written agreement with the consent of each
13-2 owner and each owner's spouse;
13-3 (2) that is made to a person who is or whose spouse is
13-4 55 years or older;
13-5 (3) that is made without recourse for personal
13-6 liability against each owner and the spouse of each owner;
13-7 (4) under which advances are provided to a borrower
13-8 based on the equity in a borrower's homestead;
13-9 (5) that does not permit the lender to reduce the
13-10 amount or number of advances because of an adjustment in the
13-11 interest rate if periodic advances are to be made;
13-12 (6) that requires no payment of principal or interest
13-13 until:
13-14 (A) the homestead property securing the loan is
13-15 sold or otherwise transferred; or
13-16 (B) all borrowers cease occupying the homestead
13-17 property as a principal residence for more than 180 consecutive
13-18 days and the location of the homestead property owner is unknown to
13-19 the lender;
13-20 (7) that provides that if the lender fails to make
13-21 loan advances as required in the loan documents and if the lender
13-22 fails to cure the default as required in the loan documents, the
13-23 lender forfeits all principal and interest of the reverse mortgage;
13-24 and
13-25 (8) that is not made unless the owner of the homestead
13-26 attests in writing that the owner received counseling regarding the
13-27 advisability and availability of reverse mortgages and other
14-1 financial alternatives.
14-2 (l) Advances made under a reverse mortgage and interest on
14-3 those advances have priority over a lien filed for record in the
14-4 real property records in the county where the homestead property is
14-5 located after the reverse mortgage is filed for record in the real
14-6 property records of that county.
14-7 (m) A reverse mortgage may provide for an interest rate that
14-8 is fixed or adjustable and may also provide for interest that is
14-9 contingent on appreciation in the fair market value of the
14-10 homestead property. Although payment of principal or interest
14-11 shall not be required under a reverse mortgage until the entire
14-12 loan becomes due and payable, interest may accrue and be compounded
14-13 during the term of the loan as provided by the reverse mortgage
14-14 loan agreement.
14-15 (n) A reverse mortgage that is secured by a valid lien
14-16 against homestead property may be made or acquired without regard
14-17 to the following provisions of any other law of this state:
14-18 (1) a limitation on the purpose and use of future
14-19 advances or other mortgage proceeds;
14-20 (2) a limitation on future advances to a term of years
14-21 or a limitation on the term of open-end account advances;
14-22 (3) a limitation on the term during which future
14-23 advances take priority over intervening advances;
14-24 (4) a requirement that a maximum loan amount be stated
14-25 in the reverse mortgage loan documents;
14-26 (5) a prohibition on balloon payments;
14-27 (6) a prohibition on compound interest and interest on
15-1 interest;
15-2 (7) a prohibition on contracting for, charging, or
15-3 receiving any rate of interest authorized by any law of this state
15-4 authorizing a lender to contract for a rate of interest; and
15-5 (8) a requirement that a percentage of the reverse
15-6 mortgage proceeds be advanced before the assignment of the reverse
15-7 mortgage.
15-8 (o) For the purposes of determining eligibility under any
15-9 statute relating to payments, allowances, benefits, or services
15-10 provided on a means-tested basis by this state, including
15-11 supplemental security income, low-income energy assistance,
15-12 property tax relief, medical assistance, and general assistance:
15-13 (1) reverse mortgage loan advances made to a borrower
15-14 are considered proceeds from a loan and not income; and
15-15 (2) undisbursed funds under a reverse mortgage loan
15-16 are considered equity in a borrower's home and not proceeds from a
15-17 loan.
15-18 (p) The advances made on a reverse mortgage loan under which
15-19 more than one advance is made must be made at regular intervals
15-20 according to a plan established by the original loan agreement.
15-21 (q) To the extent that any statutes of this state, including
15-22 without limitation, Section 41.001 of the Texas Property Code,
15-23 purport to limit encumbrances that may properly be fixed on
15-24 homestead property in a manner that does not permit encumbrances
15-25 for extensions of credit described in Subsection (a)(6) or (a)(7)
15-26 of this section, the same shall be superseded to the extent that
15-27 such encumbrances shall be permitted to be fixed upon homestead
16-1 property in the manner provided for by this amendment.
16-2 (r) The supreme court shall promulgate rules of civil
16-3 procedure for expedited foreclosure proceedings related to the
16-4 foreclosure of liens under Subsection (a)(6) of this section.
16-5 (s) The Finance Commission of Texas shall appoint a director
16-6 to conduct research on the availability, quality, and prices of
16-7 financial services and research the practices of business entities
16-8 in the state that provide financial services under this section.
16-9 The director shall collect information and produce reports on
16-10 lending activity of those making loans under this section. The
16-11 director shall report his or her findings to the legislature not
16-12 later than December 1 of each year.
16-13 SECTION 2. The following temporary provision is added to the
16-14 Texas Constitution:
16-15 TEMPORARY PROVISION. (a) This temporary provision applies
16-16 to the constitutional amendment proposed by the 75th Legislature,
16-17 Regular Session, 1997, authorizing a voluntary consensual
16-18 encumbrance on homestead property.
16-19 (b) The constitutional amendment takes effect January 1,
16-20 1998.
16-21 (c) This temporary provision takes effect on the adoption of
16-22 the amendment by the voters and expires January 2, 1998.
16-23 SECTION 3. This proposed constitutional amendment shall be
16-24 submitted to the voters at an election to be held November 4, 1997.
16-25 The ballot shall be printed to permit voting for or against the
16-26 proposition: "The amendment to the Texas Constitution expanding
16-27 the types of liens for home equity loans that a lender, with the
17-1 homeowner's consent, may place against a homestead."
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.J.R. No. 31 was passed by the House on May
9, 1997, by the following vote: Yeas 112, Nays 36, 1 present, not
voting; and that the House concurred in Senate amendments to
H.J.R. No. 31 on May 29, 1997, by the following vote: Yeas 116,
Nays 25, 2 present, not voting and that the House adopted H.C.R.
No. 326 authorizing certain corrections in H.J.R. No. 31 on May 31,
1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.J.R. No. 31 was passed by the Senate, with
amendments, on May 26, 1997, by the following vote: Yeas 22, Nays
7, 2 present, not voting and that the Senate adopted H.C.R. No. 326
authorizing certain corrections in H.J.R. No. 31 on June 1, 1997,
by a viva-voce vote.
_______________________________
Secretary of the Senate
RECEIVED: _____________________
Date
_____________________
Secretary of State