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.