By: Haggerty H.B. No. 2514 73R6730 CAE-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to interest on a note purchased at a discount. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 79, Revised Statutes (Article 5069-1.01 et 1-5 seq., Vernon's Texas Civil Statutes), is amended by adding Article 1-6 1.13 to read as follows: 1-7 Art. 1.13. INTEREST ON DISCOUNTED NOTES. (a) For the 1-8 purposes of this title, in determining the amount or rate of 1-9 interest charged on a note that was purchased at a discount, 1-10 interest includes, in addition to other amounts charged, the amount 1-11 computed by subtracting the amount for which the note was purchased 1-12 from the total amount of the principal of the note paid by the 1-13 maker of the note. If two or more notes are purchased as a package 1-14 at discount, the purchase price of a single note is determined by: 1-15 (1) dividing the principal of the note by the sum of 1-16 the principal amounts of all notes purchased; and 1-17 (2) multiplying the result computed under Subdivision 1-18 (1) of this subsection by the purchase price of the package of 1-19 notes. 1-20 (b) This article does not apply to a financial institution. 1-21 (c) In this article, "financial institution" means a state 1-22 or national bank, state or federal savings and loan association, or 1-23 state or federal credit union in this state. 1-24 SECTION 2. This Act takes effect June 1, 1993. 2-1 SECTION 3. The importance of this legislation and the 2-2 crowded condition of the calendars in both houses create an 2-3 emergency and an imperative public necessity that the 2-4 constitutional rule requiring bills to be read on three several 2-5 days in each house be suspended, and this rule is hereby suspended, 2-6 and that this Act take effect and be in force according to its 2-7 terms, and it is so enacted.