Finance
Texas is unique in that it did not adopt home equity lending until 1998. Under the Texas Constitution, which provision governs home equity loans?
AArticle I Section 17
BArticle XVI Section 50✓ Correct
CArticle XI Section 5
DArticle III Section 49
Explanation
Texas Constitution Article XVI Section 50 governs home equity loans and home equity lines of credit (HELOCs) in Texas. It was amended in 1997 (effective 1998) to allow home equity lending with significant consumer protections, including the 80% LTV cap, one loan at a time, and the 12-day cooling off period.
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