Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Coleman 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 7.02, Chapter 7, Texas Credit Code
1-6 (Article 5069-7.02, Vernon's Texas Civil Statutes), is amended by
1-7 amending Subsection (b) to read as follows:
1-8 Sec. 7.02. (9)(b) Section (9)(a) of this Article does not
1-9 apply to:
1-10 (i) a lease;
1-11 (ii) a retail installment transaction for a vehicle to be
1-12 used primarily for purposes other than personal, family, or
1-13 household use;
1-14 (iii) a transaction for which the payment schedule is
1-15 adjusted to the seasonal or irregular income or scheduled payments
1-16 or obligations of the buyer; or
1-17 (iv) a transaction of a kind determined by the Commissioner
1-18 as not requiring the protection of the buyer provided in Section
1-19 (9)(a) of this Article[.]; or
1-20 (v) a transaction in which the buyer has the right to:
1-21 (a) sell the vehicle to the holder in accordance with the
1-22 terms of a written agreement entered into concurrently with or as a
1-23 part of the retail installment transaction, and be released from
1-24 liability or obligation on the last scheduled payment upon
2-1 compliance with such agreement;
2-2 (b) pay off the last scheduled payment and keep the vehicle;
2-3 and
2-4 (c) so long as the buyer is not then in default under the
2-5 contract, refinance the last scheduled payment with the holder in
2-6 equal monthly installments; provided however that (i) the term of
2-7 the refinancing shall not be less than twenty four months, and (ii)
2-8 the rate of time price differential for the refinancing shall not
2-9 exceed the maximum lawful rate otherwise allowed under Article 7.03
2-10 for a vehicle of the type and age of the vehicle which is the
2-11 subject of the contract, but in no event shall the rate of time
2-12 price differential yielded by the refinancing exceed the rate of
2-13 time price differential under the original contract by more than 5%
2-14 per annum.
2-15 SECTION 2. EFFECTIVE DATE. This Act takes effect September
2-16 1, 1997.
2-17 SECTION 3. EMERGENCY. The importance of this legislation
2-18 and the crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.