By Wentworth                                    S.B. No. 1798

      75R4416 CLG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the penalty for charging an excess amount in connection

 1-3     with a loan or other extension of credit.

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

 1-5           SECTION 1.  Subsection (a), Article 8.01, Title 79, Revised

 1-6     Statutes (Article 5069-8.01, Vernon's Texas Civil Statutes), is

 1-7     amended to read as follows:

 1-8           (a)(1) [(a)]  Any person who violates this Subtitle by

 1-9     contracting for, charging or receiving interest or[,] time price

1-10     differential [or other charges] which are greater than the amount

1-11     authorized by this Subtitle, shall forfeit to the obligor twice the

1-12     amount of interest or time price differential [and default and

1-13     deferment charges] contracted for, charged or received, and

1-14     reasonable attorneys' fees fixed by the court.

1-15                 (2)  Any person who violates this Subtitle by

1-16     contracting for, charging or receiving a charge, other than

1-17     interest or time price differential, which is greater than the

1-18     amount authorized by this Subtitle, shall forfeit to the obligor:

1-19                       (A)  the greater of:

1-20                             (i)  three times the amount of the

1-21     difference between the amount of the other charge contracted for,

1-22     charged or received, and the appropriate amount authorized by this

1-23     Subtitle; or

1-24                             (ii)  $2,000 or 20 percent of the principal

 2-1     balance, whichever is less; and

 2-2                       (B)  reasonable attorneys' fees fixed by the

 2-3     court.

 2-4           SECTION 2.  Article 8.02, Title 79, Revised Statutes (Article

 2-5     5069-8.02, Vernon's Texas Civil Statutes), is amended to read as

 2-6     follows:

 2-7           Art. 8.02.  CONTRACTING FOR, CHARGING OR RECEIVING INTEREST,

 2-8     TIME PRICE DIFFERENTIAL OR OTHER CHARGES IN EXCESS OF DOUBLE THE

 2-9     AMOUNT AUTHORIZED.  Any person who violates this Subtitle  by

2-10     contracting for, charging or receiving interest or[,] time price

2-11     differential [or other charges] which are in the aggregate in

2-12     excess of double the total amount of interest or[,] time price

2-13     differential [and other charges] authorized by this Subtitle shall

2-14     forfeit to the obligor as an additional penalty all principal or

2-15     principal balance, as well as all interest or time price

2-16     differential, [and all other charges,] and shall pay reasonable

2-17     attorneys' fees actually incurred by the obligor in enforcing the

2-18     provisions of this Article; provided further that any such person

2-19     violating provisions of this Article shall be guilty of a

2-20     misdemeanor and upon conviction thereof shall be punished by a fine

2-21     of not more than One Hundred Dollars.  Each contract or transaction

2-22     in violation of this Article shall constitute a separate offense

2-23     punishable hereunder.

2-24           SECTION 3.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

2-26     emergency and an imperative public necessity that the

2-27     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended,

 3-2     and that this Act take effect and be in force from and after its

 3-3     passage, and it is so enacted.