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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the maximum reference base amount for |
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certain consumer loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.251, Finance Code, is amended to |
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read as follows: |
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Sec. 342.251. MAXIMUM CASH ADVANCE. The maximum cash |
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advance of a loan made under this subchapter is an amount computed |
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under Subchapter C, Chapter 341, using the reference base amount of |
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$100, except that for loans that are subject to Section 342.259 the |
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reference base amount is $300 [$200]. |
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SECTION 2. Section 342.259(a), Finance Code, is amended to |
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read as follows: |
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(a) Instead of the charges authorized by Sections 342.201 |
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and 342.252, a loan made under this subchapter with a maximum cash |
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advance computed under Subchapter C, Chapter 341, using a reference |
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base amount that is more than $100 but not more than $300 [$200], |
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may provide for: |
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(1) an acquisition charge that is not more than $10; |
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and |
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(2) an installment account handling charge that is not |
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more than the ratio of $4 a month for each $100 of cash advance. |
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SECTION 3. The changes in law made by this Act apply only to |
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a loan made on or after the effective date of this Act. A loan made |
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before the effective date of this Act is governed by the law in |
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effect on the date the loan was made, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |