75R11748 BEM-F                           

         By Coleman                                            H.B. No. 2924

         Substitute the following for H.B. No. 2924:

         By Ehrhardt                                       C.S.H.B. No. 2924

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the refinancing of certain motor vehicle retail

 1-3     installment contracts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section (9)(b), Article 7.02, Title 79, Revised

 1-6     Statutes (Article 5069-7.02, Vernon's Texas Civil Statutes), is

 1-7     amended to read as follows:

 1-8           (b)  Section (9)(a) of this Article does not apply to:

 1-9                 (i)  a lease;

1-10                 (ii)  a retail installment transaction for a vehicle to

1-11     be used primarily for purposes other than personal, family, or

1-12     household use;

1-13                 (iii)  a transaction for which the payment schedule is

1-14     adjusted to the seasonal or irregular income or scheduled payments

1-15     or obligations of the buyer;  [or]

1-16                 (iv)  a transaction of a kind determined by the

1-17     Commissioner as not requiring the protection of the buyer provided

1-18     in Section (9)(a) of this Article; or

1-19                 (v)  a retail installment transaction for the sale of a

1-20     vehicle in which the buyer is entitled, at the end of the term of

1-21     the retail installment contract, to choose any one of the

1-22     following:

1-23                       (A)  to sell the vehicle back to the seller

1-24     according to a written agreement entered into between the buyer and

 2-1     seller concurrently with or as a part of the  transaction and under

 2-2     which the buyer will be released from liability or obligation for

 2-3     the final scheduled payment under the contract on compliance with

 2-4     the agreement;

 2-5                       (B)  to pay the final scheduled payment under the

 2-6     contract; or

 2-7                       (C)  if the buyer is not in default under the

 2-8     contract, to refinance the final scheduled payment with the seller

 2-9     for repayment in not less than 24 equal monthly installment

2-10     payments and at a time price differential not to exceed the lesser

2-11     of:

2-12                             (1)  the maximum amount authorized under

2-13     Article 7.03 of this Title; or

2-14                             (2)  five percent more than the amount of

2-15     time price differential of the original contract.

2-16           SECTION 2.  This Act takes effect September 1, 1997, and

2-17     applies only to a contract entered into on or after that date.  A

2-18     contract entered into before the effective date of this Act is

2-19     governed by the law in effect at the time the contract was entered

2-20     into, and that law is continued in effect for that purpose.

2-21           SECTION 3.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.