By Pitts H.B. No. 3101 Substitute the following for H.B. No. 3101: By Marchant C.S.H.B. No. 3101 A BILL TO BE ENTITLED 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: 1-10 (1) "Account purchase transaction" means an agreement 1-11 or agreements under which a person or entity engaged in a 1-12 commercial enterprise sells accounts, instruments, documents and/or 1-13 chattel paper subject to this chapter at a discount, whether or not 1-14 the person or entity has a related repurchase obligation. 1-15 (b) For the purposes of this chapter, the amount of any 1-16 discount in, or charged under, an account purchase transaction is 1-17 not compensation contracted for, charged, or received with respect 1-18 to that account purchase transaction. 1-19 (c) For the purposes of this chapter, the parties' 1-20 characterization of an account purchase transaction as a purchase 1-21 shall be conclusive that the account purchase transaction is not a 1-22 transaction for the use, forbearance or detention of money. 1-23 SECTION 2. This Act applies to an account purchase 2-1 transaction entered before, on, or after the effective date of this 2-2 Act. 2-3 SECTION 3. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and that this Act take effect and 2-8 be in force from and after its passage, and it is so enacted.