1-1 By: Ellis S.B. No. 1781
1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 15, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 1; April 15, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1781 By: Ellis
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to delinquency charges in retail charge agreements.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (c), Section (6), Article 6.03, Title
1-13 79, Revised Statutes (Article 5069-6.03, Vernon's Texas Civil
1-14 Statutes), is amended to read as follows:
1-15 (c) The time price differential in a retail charge agreement
1-16 resulting from the computation under this Section shall be computed
1-17 utilizing the average daily balance method. A minimum time price
1-18 differential not in excess of 75 cents per month may be charged,
1-19 received, and collected for any billing cycle in which a balance is
1-20 due. Under this Section, a retail charge agreement may provide for
1-21 a delinquency charge on each installment in default for a period of
1-22 more than 21 days in an amount not to exceed $20 [$10]. Only one
1-23 such delinquency charge may be collected on any installment
1-24 regardless of the period during which it remains in default. In
1-25 addition, such retail charge agreement may provide for the payment
1-26 of an attorney's reasonable fee when it is referred for collection
1-27 to an attorney who is not a salaried employee of the holder of the
1-28 contract and for court costs and disbursements.
1-29 SECTION 2. The importance of this legislation and the
1-30 crowded condition of the calendars in both houses create an
1-31 emergency and an imperative public necessity that the
1-32 constitutional rule requiring bills to be read on three several
1-33 days in each house be suspended, and this rule is hereby suspended,
1-34 and that this Act take effect and be in force from and after its
1-35 passage, and it is so enacted.
1-36 * * * * *