AN ACT
1-1 relating to a qualified commercial loan.
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":
1-7 (A) means:
1-8 (i) [(A)] a commercial loan in which one
1-9 or more persons as part of the same transaction lends, advances,
1-10 borrows, or receives, or is obligated to lend or advance or
1-11 entitled to borrow or receive, money or credit with an aggregate
1-12 value [the original principal amount] of:
1-13 (a) $3,000,000 or more if
1-14 the commercial loan is secured by real property; or
1-15 (b) $250,000 or more if the
1-16 commercial loan is not secured by real property and, if the
1-17 aggregate value of the commercial loan is less than $500,000, the
1-18 loan documents contain a written certification from the borrower
1-19 that:
1-20 (1) the
1-21 borrower has been advised by the lender to seek the advice of an
1-22 attorney and an accountant in connection with the commercial loan;
1-23 and
1-24 (2) the
2-1 borrower has had the opportunity to seek the advice of an attorney
2-2 and accountant of the borrower's choice in connection with the
2-3 commercial loan; and [or]
2-4 (ii) [(B)] a renewal or extension of a
2-5 commercial loan described by Paragraph (A) [in the original
2-6 principal amount of $3,000,000 or more], regardless of [whether]
2-7 the principal amount of the loan at the time of the [its] renewal
2-8 or extension; and
2-9 (B) does not include a commercial loan made for
2-10 the purpose of financing a business licensed by the Motor Vehicle
2-11 Board of the Texas Department of Transportation under Section
2-12 4.01(a), Texas Motor Vehicle Commission Code (Article 4413(36),
2-13 Vernon's Texas Civil Statutes) [is $3,000,000 or more].
2-14 SECTION 2. Subdivision (9), Section 306.001, Finance Code,
2-15 is amended to read as follows:
2-16 (9) "Qualified commercial loan":
2-17 (A) means:
2-18 (i) [(A)] a commercial loan in which one
2-19 or more persons as part of the same transaction lends, advances,
2-20 borrows, or receives, or is obligated to lend or advance or
2-21 entitled to borrow or receive, money or credit with an aggregate
2-22 value [the original principal amount] of:
2-23 (a) $3 million or more if
2-24 the commercial loan is secured by real property; or
2-25 (b) $250,000 or more if the
2-26 commercial loan is not secured by real property and, if the
3-1 aggregate value of the commercial loan is less than $500,000, the
3-2 loan documents contain a written certification from the borrower
3-3 that:
3-4 (1) the
3-5 borrower has been advised by the lender to seek the advice of an
3-6 attorney and an accountant in connection with the commercial loan;
3-7 and
3-8 (2) the
3-9 borrower has had the opportunity to seek the advice of an attorney
3-10 and accountant of the borrower's choice in connection with the
3-11 commercial loan; and [or]
3-12 (ii) [(B)] a renewal or extension of a
3-13 commercial loan described by Paragraph (A) [in the original
3-14 principal amount of $3 million or more], regardless of [whether]
3-15 the principal amount of the loan at the time of the renewal or
3-16 extension; and
3-17 (B) does not include a commercial loan made for
3-18 the purpose of financing a business licensed by the Motor Vehicle
3-19 Board of the Texas Department of Transportation under Section
3-20 4.01(a), Texas Motor Vehicle Commission Code (Article 4413(36),
3-21 Vernon's Texas Civil Statutes) [when renewed or extended is $3
3-22 million or more].
3-23 SECTION 3. (a) Section 1 of this Act takes effect
3-24 immediately on passage.
3-25 (b) Section 2 of this Act takes effect and Section 1 of this
3-26 Act is repealed September 1, 1999, only if the Act of the 76th
4-1 Legislature, Regular Session, 1999, relating to nonsubstantive
4-2 additions to and corrections in enacted codes takes effect.
4-3 SECTION 4. The importance of this legislation and the
4-4 crowded condition of the calendars in both houses create an
4-5 emergency and an imperative public necessity that the
4-6 constitutional rule requiring bills to be read on three several
4-7 days in each house be suspended, and this rule is hereby suspended,
4-8 and that this Act take effect and be in force according to its
4-9 terms, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 172 passed the Senate on
March 25, 1999, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 24, 1999, by the
following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 172 passed the House, with
amendment, on May 19, 1999, by the following vote: Yeas 146,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor