H.B. No. 3101 1-1 AN ACT 1-2 relating to application of usury laws to certain purchases of 1-3 accounts receivable. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 1, Title 79, Revised Statutes (Article 1-6 5069-1.01 et seq., Vernon's Texas Civil Statutes), is amended by 1-7 adding Article 1.14 to read as follows: 1-8 Art. 1.14. PURCHASES OF ACCOUNTS RECEIVABLE. (a) In this 1-9 article, "account purchase transaction" means an agreement or 1-10 agreements under which a person or entity engaged in a commercial 1-11 enterprise sells accounts, instruments, documents, and/or chattel 1-12 paper subject to this chapter at a discount, whether or not the 1-13 person or entity has a related repurchase obligation. 1-14 (b) For the purposes of this chapter, the amount of any 1-15 discount in, or charged under, an account purchase transaction is 1-16 not compensation contracted for, charged, or received with respect 1-17 to that account purchase transaction. 1-18 (c) For the purposes of this chapter, the parties' 1-19 characterization of an account purchase transaction as a purchase 1-20 shall be conclusive that the account purchase transaction is not a 1-21 transaction for the use, forbearance, or detention of money. 1-22 SECTION 2. This Act applies to an account purchase 1-23 transaction entered before, on, or after the effective date of this 2-1 Act. 2-2 SECTION 3. The importance of this legislation and the 2-3 crowded condition of the calendars in both houses create an 2-4 emergency and an imperative public necessity that the 2-5 constitutional rule requiring bills to be read on three several 2-6 days in each house be suspended, and this rule is hereby suspended, 2-7 and that this Act take effect and be in force from and after its 2-8 passage, and it is so enacted.