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                                                                       EXHIBIT 3




                  CERTIFICATE OF DESIGNATION, PREFERENCES AND
            RIGHTS OF JUNIOR PARTICIPATING PREFERRED STOCK, SERIES D

                                       of

                               CENTEX CORPORATION

           Pursuant to Section 78.1955 of the General Corporation Law
                             of the State of Nevada

         We, Laurence E. Hirsch, Chairman of the Board and Chief Executive
Officer, and Raymond G. Smerge, Vice President, Chief Legal Officer and
Secretary, of Centex Corporation, a corporation organized and existing under
the General Corporation Law of the State of Nevada (the "Corporation"), in
accordance with the provisions of Section 78.1955 thereof, DO HEREBY CERTIFY:

         That pursuant to the authority conferred upon the Board of Directors
by the Restated Articles of Incorporation of the said Corporation, the said
Board of Directors on October 2, 1996, adopted the following resolution
creating a series of 1,000,000 shares of Preferred Stock designated as Junior
Participating Preferred Stock, Series D:

         RESOLVED, that pursuant to the authority vested in the Board of
Directors of this Corporation in accordance with the provisions of its Restated
Articles of Incorporation (as hereafter amended or supplemented, the "Articles
of Incorporation"), a series of Preferred Stock of the Corporation be and it
hereby is created, and that the designation and amount thereof and the voting
powers, preferences and relative, participating, optional and other special
rights of the shares of such series, and the qualifications, limitations or
restrictions thereof are as follows:

         Section 1.  Designation and Amount.  The shares of such series shall
be designated as "Junior Participating Preferred Stock, Series D", par value
$.25 per share (the "Series D Preferred Stock"), and the number of shares
constituting such series shall be 1,000,000.

         Section 2.  Dividends and Distributions.

         (a)     Subject to the prior and superior rights of the holders of any
shares of any series of Preferred Stock ranking prior and superior to the
shares of Series D Preferred Stock with respect to dividends, the holders of
shares of Series D Preferred Stock shall be entitled to receive, when, as and
if declared by the Board of Directors out of funds legally available therefor,
quarterly dividends payable in cash on the 1st day of January, April, July and
September in each year (each such date being referred to herein as a "Quarterly
Dividend Payment Date"), commencing on the first Quarterly Dividend Payment
Date after the first issuance of a share or fraction of a share of Series D
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to
the greater of (a) $1.00 or (b) subject to the provision for adjustment
hereinafter set forth, 100 times the aggregate per share amount of all cash
dividends, and 100 times
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the aggregate per share amount (payable-in-kind) of all non-cash dividends or
other distributions other than a dividend payable in shares of Common Stock or
a subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock, par value $.25 per share, of the
Corporation (the "Common Stock") since the immediately preceding Quarterly
Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Series D
Preferred Stock.  In the event the Corporation shall at any time (i) declare
any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding Common Stock, or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the amount to which
holders of shares of Series D Preferred Stock were entitled immediately prior
to such event under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         (b)     The Corporation shall declare a dividend or distribution on
the Series D Preferred Stock as provided in paragraph (a) above immediately
after it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock); provided that, in the event no
dividend or distribution shall have been declared on the Common Stock during
the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Series D
Preferred Stock shall nevertheless be payable on such subsequent Quarterly
Dividend Payment Date.

         (c)     Dividends shall begin to accrue and be cumulative on
outstanding shares of Series D Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series D
Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date
after the record date for the determination of holders of shares of Series D
Preferred Stock entitled to receive a quarterly dividend and before such
Quarterly Dividend Payment Date, in either of which events such dividends shall
begin to accrue and be cumulative from such Quarterly Dividend Payment Date.
Accrued but unpaid dividends shall not bear interest.  Dividends paid on the
shares of Series D Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding.  The Board of Directors may fix a record date for the
determination of holders of shares of Series D Preferred Stock entitled to
receive payment of a dividend or distribution declared thereon, which record
date shall be no more than 30 days prior to the date fixed for the payment
thereof.


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         Section 3.  Voting Rights.  The holders of shares of Series D
Preferred Stock shall have the following voting rights:

         (a)     Subject to the provision for adjustment hereinafter set forth,
each share of Series D Preferred Stock shall entitle the holder thereof to 100
votes on all matters submitted to a vote of the stockholders of the
Corporation.  In the event the Corporation shall at any time (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a
smaller number of shares, then in each such case the number of votes per share
to which holders of shares of Series D Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by
a fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

         (b)     Except as otherwise provided herein, in any other Certificate
of Designations creating a series of Preferred Stock or any similar stock, or
by law, the holders of shares of Series D Preferred Stock and the holders of
shares of Common Stock and any other capital stock of the Corporation having
general voting rights shall vote together as one class on all matters submitted
to a vote of stockholders of the Corporation.

         (c)     (i)  If at any time dividends on any Series D Preferred Stock
         shall be in arrears in an amount equal to six (6) quarterly dividends
         thereon, the occurrence of such contingency shall mark the beginning
         of a period (herein called a "default period") which shall extend
         until such time when all accrued and unpaid dividends for all previous
         quarterly dividend periods and for the current quarterly dividend
         period on all shares of Series D Preferred Stock then outstanding
         shall have been declared and paid or set apart for payment.  During
         each default period, all holders of Preferred Stock (including holders
         of the Series D Preferred Stock) with dividends in arrears in an
         amount equal to six (6) quarterly dividends thereon, voting as a
         class, irrespective of series, shall have the right to elect two (2)
         Directors.

                 (ii)  During any default period, such voting right of the
         holders of Series D Preferred Stock may be exercised initially at a
         special meeting called pursuant to subparagraph (iii) of this Section
         3(c) or at any annual meeting of stockholders, and thereafter at
         annual meetings of stockholders, provided that neither such voting
         right nor the right of the holders of any other series of Preferred
         Stock, if any, to increase, in certain cases, the authorized number of
         Directors shall be exercised unless the holders of ten percent (10%)
         in number of shares of Preferred Stock outstanding shall be present in
         person or by proxy.  The absence of a quorum of the holders of Common
         Stock shall not affect the exercise by the holders of Preferred Stock
         of





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         such voting right.  At any meeting at which the holders of Preferred
         Stock shall exercise such voting right initially during an existing
         default period, they shall have the right, voting as a class, to elect
         Directors to fill such vacancies, if any, in the Board of Directors as
         may then exist up to two (2) Directors or, if such right is exercised
         at an annual meeting, to elect two (2) Directors.  If the number which
         may be so elected at any special meeting does not amount to the
         required number, the holders of the Preferred Stock shall have the
         right to make such increase in the number of Directors as shall be
         necessary to permit the election by them of the required number.
         After the holders of the Preferred Stock shall have exercised their
         right to elect Directors in any default period and during the
         continuance of such period, the number of Directors shall not be
         increased or decreased except by vote of the holders of Preferred
         Stock as herein provided or pursuant to the rights of any equity
         securities ranking senior to or pari passu with the Series D Preferred
         Stock.

                 (iii)  Unless the holders of Preferred Stock shall, during an
         existing default period, have previously exercised their right to
         elect Directors, the Board of Directors may order, or any stockholder
         or stockholders owning in the aggregate not less than ten percent
         (10%) of the total number of shares of Preferred Stock outstanding,
         irrespective of series, may request, the calling of a special meeting
         of the holders of Preferred Stock, which meeting shall thereupon be
         called by the President, a Vice-President or the Secretary of the
         Corporation.  Notice of such meeting and of any annual meeting at
         which holders of Preferred Stock are entitled to vote pursuant to this
         subparagraph (c)(iii) shall be given to each holder of record of
         Preferred Stock by mailing a copy of such notice to him at his last
         address as the same appears on the books of the Corporation.  Such
         meeting shall be called for a time not earlier than 20 days and not
         later than 60 days after such order or request or in default of the
         calling of such meeting within 60 days after such order or request,
         such meeting may be called on similar notice by any stockholder or
         stockholders owning in the aggregate not less than ten percent (10%)
         of the total number of shares of Preferred Stock outstanding.
         Notwithstanding the provisions of this subparagraph (c)(iii), no such
         special meeting shall be called during the period within 60 days
         immediately preceding the date fixed for the next annual meeting of
         the stockholders.

                 (iv)  In any default period, the holders of Common Stock, and
         other classes of stock of the Corporation if applicable, shall
         continue to be entitled to elect the whole number of Directors until
         the holders of Preferred Stock shall have exercised their right to
         elect two (2) Directors voting as a class, after the exercise of which
         right (x) the Directors so elected by the holders of Preferred Stock
         shall continue in office until their successors shall have been





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         elected by such holders or until the expiration of the default period,
         and (y) any vacancy in the Board of Directors may (except as provided
         in subparagraph (c)(ii) of this Section 3) be filled by vote of a
         majority of the remaining Directors theretofore elected by the holders
         of the class of stock which elected the Director whose office shall
         have become vacant.  References in this subparagraph (c) to Directors
         elected by the holders of a particular class of stock shall include
         Directors elected by such Directors to fill vacancies as provided in
         clause (y) of the foregoing sentence.

                 (v)  Immediately upon the expiration of a default period, (x)
         the right of the holders of Preferred Stock as a class to elect
         Directors shall cease, (y) the term of any Directors elected by the
         holders of Preferred Stock as a class shall terminate, and (z) the
         number of Directors shall be such number as may be provided for in the
         Articles of Incorporation or bylaws irrespective of any increase made
         pursuant to the provisions of subparagraph (c)(ii) of this Section 3
         (such number being subject, however, to change thereafter in any
         manner provided by law or in the Articles of Incorporation or bylaws).
         Any vacancies in the Board of Directors effected by the provisions of
         clauses (y) and (z) in the preceding sentence may be filled by a
         majority of the remaining Directors.

         (d)     Except as set forth herein, holders of Series D Preferred
Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Common
Stock as set forth herein) for taking any corporate action.

         Section 4.  Certain Restrictions.

         (a)     Whenever quarterly dividends or other dividends or
distributions payable on the Series D Preferred Stock as provided in Section 2
are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series D Preferred Stock
outstanding shall have been paid in full, the Corporation shall not

                 (i)  declare or pay dividends on, make any other distributions
         on, or redeem or purchase or otherwise acquire for consideration any
         shares of stock ranking junior (either as to dividends or upon
         liquidation, dissolution or winding up) to the Series D Preferred
         Stock;

                 (ii)  declare or pay dividends on or make any other
         distributions on any shares of stock ranking on a parity (either as to
         dividends or upon liquidation, dissolution or winding up) with the
         Series D Preferred Stock, except dividends paid ratably on the Series
         D Preferred Stock and all such parity stock on which dividends are
         payable or in arrears in proportion to the total amounts to which the
         holders of all such shares are then entitled;





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                 (iii)  redeem or purchase or otherwise acquire for
         consideration shares of any stock ranking junior (either as to
         dividends or upon liquidation, dissolution or winding up) to the
         Series D Preferred Stock, provided that the Corporation may at any
         time redeem, purchase or otherwise acquire shares of any such junior
         stock in exchange for shares of any stock of the Corporation ranking
         junior (either as to dividends or upon dissolution, liquidation or
         winding up) to the Series D Preferred Stock;

                 (iv)  purchase or otherwise acquire for consideration any
         shares of Series D Preferred Stock, or any shares of stock ranking on
         a parity with the Series D Preferred Stock, except in accordance with
         a purchase offer made in writing or by publication (as determined by
         the Board of Directors) to all holders of such shares upon such terms
         as the Board of Directors, after consideration of the respective
         annual dividend rates and other relative rights and preferences of the
         respective series and classes, shall determine in good faith will
         result in fair and equitable treatment among the respective series or
         classes.

         (b)     The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under subparagraph (a)
of this Section 4, purchase or otherwise acquire such shares at such time and
in such manner.

         Section 5.  Reacquired Shares.  Any shares of Series D Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof.  All
such shares shall upon their cancellation become authorized but unissued shares
of Preferred Stock and may be reissued as part of a new series of Preferred
Stock to be created by resolution or resolutions of the Board of Directors,
subject to the conditions and restrictions on issuance set forth herein.

         Section 6.  Liquidation, Dissolution or Winding Up.  Upon any
liquidation, dissolution or winding up of the Corporation, no distribution
shall be made (i) to the holders of shares of stock ranking junior (either as
to dividends or upon liquidation, dissolution or winding up) to the Series D
unless, prior thereto, the holders of shares of Series D Preferred Stock shall
have received $100 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared to the date of
such payment, provided that the holders of shares of Series D Preferred Stock
shall be entitled to receive an aggregate amount per share, subject to the
provision for adjustment hereinafter set forth, equal to 100 times the
aggregate amount to be distributed per share to holders of shares of Common
Stock, or (ii) to the holders of shares of stock ranking on a parity (either as
to dividends or upon liquidation, dissolution or winding up) with the Series D
Preferred Stock, except distributions made ratably on the Series D Preferred
Stock and all such parity stock in proportion to the total amounts to





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which the holders of all such shares are entitled upon such liquidation,
dissolution or winding up.  In the event the Corporation shall at any time
after the Rights Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock,
or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the aggregate amount to which holders of shares of
Series D Preferred Stock were entitled immediately prior to such event under
the proviso in clause (i) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         Section 7.  Consolidation, Merger, etc.  In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
Series D Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share (subject to the provision for adjustment
hereinafter set forth) equal to 100 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is changed or exchanged.
In the event the Corporation shall at any time (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding
Common Stock, or (iii) combine the outstanding Common Stock into a smaller
number of shares, then in each such case the amount set forth in the preceding
sentence with respect to the exchange or change of shares of Series D Preferred
Stock shall be adjusted by multiplying such amount by a fraction the numerator
of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

         Section 8.  No Redemption; No Sinking Fund.

         (a)     The shares of Series D Preferred Stock shall not be
redeemable.

         (b)     The shares of Series D Preferred Stock shall not be subject to
or entitled to the operation of a retirement or sinking fund.

         Section 9.  Ranking.  The Series D Preferred Stock shall rank junior
to all other series of the Corporation's Preferred Stock as to the payment of
dividends and distribution of assets, unless the terms of any such series shall
provide otherwise.

         Section 10.  Amendment.  The Articles of Incorporation shall not be
further amended in any manner which would materially alter or change the
powers, preferences or special rights of the Series D Preferred Stock so as to
affect them adversely without the





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affirmative vote of the holders of two-thirds or more of the outstanding shares
of Series D Preferred Stock, voting separately as a class.

         Section 11.  Fractional Shares.  Series D Preferred Stock may be
issued in fractions of a share which shall entitle the holder, in proportion to
such holders fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series D Preferred Stock.





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         IN WITNESS WHEREOF, the Corporation has caused this Certificate to be
duly executed in its corporate name on this 4th day of October, 1996.

                                        CENTEX CORPORATION



                                        By:       /s/ LAURENCE E. HIRSCH
                                                  ----------------------------
                                                  Laurence E. Hirsch, Chairman
                                                  of the Board and Chief
                                                  Executive Officer


         Before me on this 4th day of October, 1996, personally appeared
Laurence E. Hirsch, Chairman of the Board and Chief Executive Officer of Centex
Corporation, and acknowledged to me that he executed the foregoing certificate
for the purposes therein expressed.


         [Notarial Seal]                 /s/ WENDY N. MARTIN                   
                                        ---------------------------------------
                                        Notary Public, State of Texas

                                           Wendy N. Martin                     
                                        ---------------------------------------
                                        Typed or Printed Name of Notary
Attest:                                


/s/ RAYMOND G. SMERGE     
--------------------------
Raymond G. Smerge, Vice President,
Chief Legal Officer and Secretary



         Before me on this 4th day of October, 1996, personally appeared
Raymond G. Smerge, Vice President, Chief Legal Officer and Secretary of Centex
Corporation, and acknowledged to me that he executed the foregoing certificate
for the purposes therein expressed.


         [Notarial Seal]                /s/ WENDY N. MARTIN                   
                                        ---------------------------------------
                                        Notary Public, State of Texas
                                       
                                           Wendy N. Martin                   
                                        ---------------------------------------
                                        Typed or Printed Name of Notary





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