By Heflin                                             H.B. No. 1094
       74R4209 CLG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to delinquency charges in retail charge agreements.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 6.03(6)(c), Title 79, Revised Statutes
    1-5  (Article 5069-6.03, Vernon's Texas Civil Statutes), is amended to
    1-6  read as follows:
    1-7        (c)  The time price differential in a retail charge agreement
    1-8  resulting from the computation under this Section shall be computed
    1-9  utilizing the average daily balance method.  A minimum time price
   1-10  differential not in excess of 75 cents per month may be charged,
   1-11  received, and collected for any billing cycle in which a balance is
   1-12  due.  Under this Section, a retail charge agreement may provide for
   1-13  a delinquency charge on each installment in default for a period of
   1-14  more than 10 days in an amount not to exceed $10 <five percent of
   1-15  each installment or $5, whichever is less>.  Only one such
   1-16  delinquency charge may be collected on any installment regardless
   1-17  of the period during which it remains in default.  In addition,
   1-18  such retail charge agreement may provide for the payment of an
   1-19  attorney's reasonable fee when it is referred for collection to an
   1-20  attorney who is not a salaried employee of the holder of the
   1-21  contract and for court costs and disbursements.
   1-22        SECTION 2.  The importance of this legislation and the
   1-23  crowded condition of the calendars in both houses create an
   1-24  emergency and an imperative public necessity that the
    2-1  constitutional rule requiring bills to be read on three several
    2-2  days in each house be suspended, and this rule is hereby suspended,
    2-3  and that this Act take effect and be in force from and after its
    2-4  passage, and it is so enacted.