LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 3, 1995
TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 2406
Committee on Financial Institutions By: Elkins
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2406 (relating to debt cancellation contracts offered by banks
under retail installment contracts) this office has determined
the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would provide for debt cancellation in the event of
death on certain retail installment agreements. Each bank which
proposes such clauses to their contracts would be required to
file a copy of such contracts and fees with the Banking
Commissioner.
Implementing the provisions of the bill would require historical
review of exam procedures, review of the applications submitted,
and the establishment of procedures to ensure appropriate
procedures are in place to maintain financial soundness of each
institution submitting applications.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Probable Cost
Year Gain to Banking Out of Banking
Department Expense Department
Expense
Fund 508 Fund 508
GR Consolidated GR Consolidated
1996 $125,000 $406,493
1997 187,500 394,695
1998 250,000 409,392
1999 375,000 426,624
2000 500,000 466,468
No fiscal implication to units of local government is
anticipated.
Source: Savings and Loan Department, Department of Banking
LBB Staff: JK, VS, RR