Amend CSHB 1188 as follows:
      Strike Art. 5A.06 in its entirety and replace it with the
following:
      Art. 5A.06.  INTEREST.  A lender may contact for and receive
on an equity loan that is not a first lien any fixed or variable
rate of interest that does not exceed the lesser of the maximum
rate permitted by Article 1.04 of this title, or seven percentage
points above the auction average rate quoted on bank discount basis
for 26-week treasury bills issued by the United States government,
as published by the Federal Reserve Board, for the week preceding
the week in which the rate is contracted for, rounded to the
nearest one-quarter of one percent. Interest shall be accrued and
earned by applying the simple annual interest rate or rates under
the loan contract to the principal balance. In determining the
amount of interest accrued, the lender may assume that the payments
have been made as originally scheduled and ignore any difference
created by later or early payments.