Finance
In Texas, a 'home equity line of credit' (HELOC) established under Article XVI Section 50(t) must:
ABe used only for home improvements
BHave a term not to exceed 10 years for the draw period, require an annual fee disclosure, and comply with other specific constitutional requirements✓ Correct
CBe the only lien on the property
DBe originated only by state-chartered banks
Explanation
Texas HELOCs under Article XVI Section 50(t) have specific requirements including: maximum 10-year draw period, compliance with the 80% LTV limit at all times during the draw period, specific disclosure requirements, and protection against adverse changes in terms. These are among the most restrictive HELOC rules in the nation.
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