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.