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.