By: Harris S.B. No. 172
A BILL TO BE ENTITLED
AN ACT
1-1 relating to qualified commercial loans.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subdivision (9), Article 1H.001, Title 79,
1-4 Revised Statutes (Article 5069-1H.001, Vernon's Texas Civil
1-5 Statutes), is amended to read as follows:
1-6 (9) "Qualified commercial loan" means:
1-7 (A) a commercial loan in which one or more
1-8 persons, as part of the same transaction, lends, advances, borrows,
1-9 or receives or is obligated to lend or advance or is entitled to
1-10 borrow or receive funds or credit with an aggregate value [the
1-11 original principal amount] of $250,000 [$3,000,000] or more; or
1-12 (B) a renewal or extension of a commercial loan
1-13 described in Paragraph (A) of this subdivision [in the original
1-14 principal amount of $3,000,000 or more], whether or not the
1-15 principal amount of the loan at the time of the [its] renewal or
1-16 extension is $250,000 [$3,000,000] or more.
1-17 (C) A qualified commercial loan under $3 million
1-18 may not be secured by real estate.
1-19 SECTION 2. Article 1H.101, Title 79, Revised Statutes
1-20 (Article 5069-1H.101, Vernon's Texas Civil Statutes), is amended by
1-21 amending Subsection (b) and adding Subsection (d) to read as
1-22 follows:
1-23 (b) The parties may contract for the following additional
1-24 charges:
2-1 (1) a discount or commission that an obligor has paid
2-2 or agreed to pay to one or more underwriters of securities issued
2-3 by the obligor;
2-4 (2) an option or right to exchange, redeem, or convert
2-5 all or a portion of the principal amount of the loan, or interest
2-6 on the principal amount, for or into capital stock or other equity
2-7 securities of an obligor or of an affiliate of the obligor;
2-8 (3) an option or right to purchase capital stock or
2-9 other equity securities of an obligor or of an affiliate of the
2-10 obligor;
2-11 (4) an option or other right, whether by contract,
2-12 conveyance, or otherwise, to participate in or own a share of the
2-13 income, revenues, production, appreciation in value, or profits:
2-14 (A) of an obligor or of an affiliate of the
2-15 obligor;
2-16 (B) of any segment of the business or operations
2-17 of an obligor or of an affiliate of the obligor; or
2-18 (C) derived or to be derived from any ownership
2-19 rights of an obligor or of an affiliate of the obligor in real or
2-20 personal property, including any proceeds of the sale or other
2-21 disposition of ownership rights; or
2-22 (5) any compensation realized as a result of the
2-23 receipt, exercise, sale, or other disposition of any option or
2-24 other right described by this subsection.
2-25 (d) The provisions of this article do not apply to a loan
2-26 made to a licensee of the Motor Vehicle Board of the Texas
3-1 Department of Transportation.
3-2 SECTION 3. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended,
3-7 and that this Act take effect and be in force from and after its
3-8 passage, and it is so enacted.