HBA-JLV H.B. 1995 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1995
By: Marchant
Financial Institutions
4/4/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides that encumbrances may be properly fixed on homestead
property for purchase money, taxes on property, work and material used in
constructing improvements on the property, an owelty of partition imposed
against the property, and for the refinance of a lien against a homestead.
However, the Texas Constitution also provides additional conditions under
which an encumbrance may be properly fixed on homestead property or an
extension of credit constituting a reverse mortgage.  House Bill 1995
provides that an encumbrance may be properly fixed on homestead property
for an extension of credit that meets the requirements of the Texas
Constitution or a reverse mortgage that meets the requirements of the Texas
Constitution. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1995 amends the Property Code to provide that an encumbrance may
be properly fixed on homestead property for an extension of credit that
meets the requirements of the Texas Constitution or a reverse mortgage that
meets the requirements of the Texas Constitution. 

EFFECTIVE DATE

September 1, 2001.