1-1 By: Smithee (Senate Sponsor - Parker) H.B. No. 2005
1-2 (In the Senate - Received from the House April 26, 1993;
1-3 April 27, 1993, read first time and referred to Committee on
1-4 Economic Development; May 11, 1993, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 8, Nays
1-6 0; May 11, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 2005 By: Parker
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to avoidance of liability by correction of certain
1-24 violations of state credit law.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Article 1.06, Title 79, Revised Statutes (Article
1-27 5069-1.06, Vernon's Texas Civil Statutes), is amended by adding
1-28 Sections (4) and (5) to read as follows:
1-29 (4)(A) A person has no liability to an obligor for a
1-30 violation of this Subtitle if:
1-31 (i) within 60 days after the date the person
1-32 actually discovered the violation the person corrects the violation
1-33 as to the obligor by taking whatever actions and by making
1-34 whatever adjustments are necessary to correct the violation,
1-35 including the payment of interest on a refund, if any, at the
1-36 applicable rate provided for in the contract of the parties; and
1-37 (ii) the person gives written notice to the
1-38 obligor of the violation before the obligor has given written
1-39 notice of or has filed an action alleging the violation of this
1-40 Subtitle.
1-41 (B) For the purposes of this section, the term
1-42 "actually discovered" may not be construed, interpreted, or applied
1-43 in a manner that refers to the time or date when, through
1-44 reasonable diligence, an ordinarily prudent person could or should
1-45 have discovered or known as a matter of law or fact of the
1-46 violation in question, but the term shall be construed,
1-47 interpreted, and applied to refer to the time of the discovery of
1-48 the violation in fact. However, the actual discovery of a
1-49 violation in one transaction may constitute actual discovery of the
1-50 same violation in other transactions if the violation actually
1-51 discovered is of such a nature that it would necessarily be
1-52 repeated and would be clearly apparent in the other transactions
1-53 without the necessity of examining all the other transactions. For
1-54 purposes of this Section the giving of written notice shall be
1-55 accomplished by and on the delivery of the notice to the person to
1-56 whom the notice is directed or to the person's duly authorized
1-57 agent or attorney of record. The delivery shall be made in person
1-58 or by United States mail to the address shown on the most recent
1-59 documents in the transaction. Deposit of the notice as registered
1-60 or certified mail in a postage paid, properly addressed wrapper in
1-61 a post office or official depository under the care and custody of
1-62 the United States Postal Service constitutes prima facie evidence
1-63 of the delivery of the notice to the person.
1-64 (C) A person has no liability to an obligor for a
1-65 violation of this Subtitle if:
1-66 (i) before March 1, 1994, the person corrects
1-67 the violation as to the obligor by taking whatever actions and by
1-68 making whatever adjustments are necessary to correct the violation,
2-1 including the payment of interest on a refund, if any, at the
2-2 applicable rate provided for in the contract of the parties; and
2-3 (ii) the person gives written notice to the
2-4 obligor of the correction before the obligor has given written
2-5 notice of or has filed an action alleging the violation of this
2-6 Subtitle.
2-7 (5) The action of a person who corrects a violation of this
2-8 Subtitle as provided by Section (4) of this Article is effective as
2-9 to all persons in the same transaction, and those persons are
2-10 entitled to the same protection as that provided by Section (4) of
2-11 this Article to the person who makes the correction.
2-12 SECTION 2. The importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended,
2-17 and that this Act take effect and be in force from and after its
2-18 passage, and it is so enacted.
2-19 * * * * *
2-20 Austin,
2-21 Texas
2-22 May 11, 1993
2-23 Hon. Bob Bullock
2-24 President of the Senate
2-25 Sir:
2-26 We, your Committee on Economic Development to which was referred
2-27 H.B. No. 2005, have had the same under consideration, and I am
2-28 instructed to report it back to the Senate with the recommendation
2-29 that it do not pass, but that the Committee Substitute adopted in
2-30 lieu thereof do pass and be printed.
2-31 Parker,
2-32 Chairman
2-33 * * * * *
2-34 WITNESSES
2-35 FOR AGAINST ON
2-36 ___________________________________________________________________
2-37 Name: Rob Norcross x
2-38 Representing: Texas Bankers Association
2-39 City: Austin
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2-41 Name: Karen Neeley x
2-42 Representing: Ind. Bankers Assn of Texas
2-43 City: Austin
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