SRC-MWN S.B. 105 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 105
77R1197 MTB-DBy: Carona
Business & Commerce
1/19/2001
As Filed


DIGEST AND PURPOSE 

Currently, loans of more than $100 but less than $480 possess two different
charges under Chapter 342, Texas Finance Code: an acquisition charge, which
is a one time charge; and an installment account handling charge, which is
a monthly charge that is subject to refund upon prepayment. As proposed,
S.B. 105 would make the one-time acquisition charge on loans of more than
$100 not subject to refund. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 342.256, Finance Code, to provide that an
acquisition charge authorized under Section 342.252 (1), (2), or (3) is
considered to be earned at the time a loan is made and is not subject to
refund. Provides that on the prepayment of a loan with a cash advance of
$30 or more, rather than not more than $100, the installment account
handling charge authorized under Section 342.252 (2) or (3) is subject to
refund in accordance with Subchapter H. Deletes text regarding prepayment
of a loan. 

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: upon passage or September 1, 2001.