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LASALLE BANK NAT. ASS'N v. WHITE

No. 06-1016.

246 S.W.3d 616 (2007)

LASALLE BANK NATIONAL ASSOCIATION, a/k/a Lasalle National Bank, as Trustee and Lasalle National Bank, as Trustee Under the Pooling and Servicing Agreement Dated June 1, 1999, Series 1999-2, Petitioners, v. Lorae WHITE and Gerald Geistweidt, Respondents.

Supreme Court of Texas.

Rehearing Denied March 28, 2008.

Attorney(s) appearing for the Case

L. Frank Oliver, Lindsay Lee Lambert, Marc O. Knisely, Henry A. Jakob and Louis Andrew Oliver, for Lasalle Bank National Association.

A. Gerald Geistweidt, for Lorae White.

Rebekah Marie Geistweidt, for Gerald Geistweidt.

PER CURIAM.

The Texas Constitution prohibits homestead property designated for agricultural use from being pledged to secure a home-equity loan, and mandates forfeiture of all principal and interest for loans so secured. In this case, a borrower obtained a home-equity loan secured by agricultural homestead property, disbursed a portion of the proceeds at closing to pay off constitutionally permissible purchase-money and tax liens (the "refinance portion"), and kept...

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