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                                                                  H.B. No. 1234




AN ACT

relating to the appointment of substitute trustees in certain 
foreclosures. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 51.0075, Property Code, is amended by 
amending Subsection (c) and adding Subsections (d) and (e) to read 
as follows:
	(c)  Notwithstanding any agreement to the contrary, a [A] 
mortgagee may appoint or may authorize a mortgage servicer to 
appoint a [perpetual] substitute trustee or substitute trustees to 
succeed to all title, powers, and duties of the original trustee.  A 
mortgagee or mortgage servicer may make an appointment or 
authorization under this subsection by power of attorney, corporate 
resolution, or other written instrument.  [The power of attorney or 
written instrument must be signed by the mortgagee's 
representative, acknowledged, and sworn to with a jurat.]
	(d)  A mortgage servicer may authorize an attorney to appoint 
a substitute trustee or substitute trustees on behalf of a 
mortgagee under Subsection (c).
	(e)  The name and a street address for a trustee or 
substitute trustees shall be disclosed on the notice required by 
Section 51.002(b).
	SECTION 2.  The changes in law made by this Act apply to a 
security instrument or other contract executed on or after the 
effective date of this Act and to a security instrument or other 
contract executed before the date of this Act that does not conflict 
with the changes in law made by this Act.  A security instrument or 
other contract executed before the effective date of this Act that 
conflicts with the changes in law made by this Act is governed by 
the law in effect at the time the security instrument or other 
contract was executed, and the former law is continued in effect for 
that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 1234 was passed by the House on May 
13, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 1234 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor