81R655 AJA-D
By: Dutton H.B. No. 899
A BILL TO BE ENTITLED
AN ACT
relating to the foreclosure of certain liens on real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 202, Property Code, is amended by adding
Section 202.010 to read as follows:
Sec. 202.010. FORECLOSURE OF CERTAIN LIENS. A restrictive
covenant may not be adopted that places a lien on real property to
secure payment of a debt created by the covenant unless the covenant
exempts a homestead, as defined by Section 41.002, from foreclosure
of the lien.
SECTION 2. Section 202.010, Property Code, as added by this
Act, applies to a restrictive covenant adopted on or after the
effective date of this Act. A restrictive covenant adopted before
the effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.