Sec. 23.58. LOAN SECURED BY LIEN ON OPEN-SPACE LAND. (a) A lender may not require as a condition to granting or amending the terms of a loan secured by a lien in favor of the lender on land appraised according to this subchapter that the borrower waive the right to the appraisal or agree not to apply for or receive the appraisal.
(b) A provision in an instrument pertaining to a loan secured by a lien in favor of the lender on land appraised according to this subchapter is void to the extent that the provision attempts to require the borrower to waive the right to the appraisal or to prohibit the borrower from applying for or receiving the appraisal.
(c) A provision in an instrument pertaining to a loan secured by a lien in favor of the lender on land appraised according to this subchapter that requires the borrower to make a payment to protect the lender from loss because of the imposition of additional taxes under Section 23.55 is void unless the provision:
(1) requires the borrower to pay into an escrow account established by the lender an amount equal to the additional taxes that would be due under Section 23.55 if a change of use occurred on January 1 of the year in which the loan is granted or amended;
(2) requires the escrow account to bear interest to be credited to the account monthly;
(3) permits the lender to apply money in the escrow account to the payment of a bill for additional taxes under Section 23.55 before the loan is paid and requires the lender to refund the balance remaining in the escrow account after the bill is paid to the borrower; and
(4) requires the lender to refund the money in the escrow account to the borrower on the payment of the loan.
(d) On the request of the borrower or the borrower's representative, the assessor for each taxing unit shall compute the additional taxes that would be due that taxing unit under Section 23.55 if a change of use occurred on January 1 of the year in which the loan is granted or amended. The assessor may charge a reasonable fee not to exceed the actual cost of making the computation.
(e) In this section, "lender" has the meaning assigned by Section 23.47(e).
Added by Acts 1995, 74th Leg., ch. 82, Sec. 2, eff. May 11, 1995.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 726 (H.B. 3833), Sec. 3, eff. June 15, 2021.
Structure Texas Statutes
Subtitle D - Appraisal and Assessment
Chapter 23 - Appraisal Methods and Procedures
Subchapter D. Appraisal of Agricultural Land
Section 23.52. Appraisal of Qualified Agricultural Land
Section 23.521. Standards for Qualification of Land for Appraisal Based on Wildlife Management Use
Section 23.522. Temporary Cessation of Agricultural Use During Drought
Section 23.524. Temporary Cessation of Agricultural Use to Manage the Spread of Certain Pests
Section 23.525. Oil and Gas Operations on Land
Section 23.526. Temporary Cessation of Agricultural Use Due to Quarantine for Ticks
Section 23.53. Capitalization Rate
Section 23.541. Late Application for Appraisal as Agricultural Land
Section 23.55. Change of Use of Land
Section 23.551. Additional Notice to Certain Landowners
Section 23.56. Land Ineligible for Appraisal as Open-Space Land
Section 23.57. Action on Applications
Section 23.58. Loan Secured by Lien on Open-Space Land
Section 23.59. Appraisal of Open-Space Land That Is Converted to Timber Production
Section 23.60. Reappraisal of Land Subject to Temporary Quarantine for Ticks