By Edwards                                            H.B. No. 3056
         76R9273 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the maximum interest rate on a home equity loan.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 344, Finance Code, is
 1-5     amended by adding Section 344.1025 to read as follows:
 1-6           Sec. 344.1025.  MAXIMUM INTEREST RATE: HOME EQUITY LOAN.
 1-7     Notwithstanding another provision of this title, a contract for an
 1-8     extension of credit  secured by a lien on a homestead authorized by
 1-9     Section 50(a)(6), Article XVI, Texas Constitution:
1-10                 (1)  may not provide for a precomputed interest charge;
1-11     and
1-12                 (2)  may provide for interest but the rate of interest
1-13     may not exceed the lowest rate offered by the lender on the date of
1-14     the contract to any other borrower for  such a loan, plus one
1-15     percent.
1-16           SECTION 2.  Subchapter G, Chapter 342, Finance Code, is
1-17     amended by adding Section 342.3015 to read as follows:
1-18           Sec. 342.3015.  MAXIMUM INTEREST RATE: HOME EQUITY LOAN.
1-19     Notwithstanding another provision of this title, a contract for an
1-20     extension of credit  secured by a lien on a homestead authorized by
1-21     Section 50(a)(6), Article XVI, Texas Constitution:
1-22                 (1)  may not provide for a precomputed interest charge;
1-23     and
1-24                 (2)  may provide for interest but the rate of interest
 2-1     may not exceed the lowest rate offered by the lender on the date of
 2-2     the contract to any other borrower for  such a loan, plus one
 2-3     percent.
 2-4           SECTION 3.  (a)  Except as provided by Subsections (b) and
 2-5     (c) of this section, this Act takes effect September 1, 1999.
 2-6           (b)  Section 1 of this Act takes effect  only  if  the  Act
 2-7     of  the  76th Legislature,  Regular  Session,  1999, relating to
 2-8     nonsubstantive additions to and corrections in enacted codes does
 2-9     not take effect.
2-10           (c)  Section 2 of this Act takes effect  only  if  the  Act
2-11     of  the  76th Legislature, Regular  Session,  1999, relating to
2-12     nonsubstantive additions to and corrections in enacted codes takes
2-13     effect.
2-14           SECTION 4.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.