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.