1-1                                   AN ACT
 1-2     relating to the refund of certain consumer loan acquisition
 1-3     charges.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 342.256, Finance Code, is amended to read
 1-6     as follows:
 1-7           Sec. 342.256.  REFUND. (a)  An acquisition charge authorized
 1-8     under Section 342.252(1), [or] (2), or (3) is considered to be
 1-9     earned at the time a loan is made and is not subject to refund.
1-10           (b)  On the prepayment of a loan with a cash advance of $30
1-11     or more [but not more than $100], the installment account handling
1-12     charge authorized under Section 342.252(2) or (3) is subject to
1-13     refund in accordance with Subchapter H.
1-14           [(c)  On the prepayment of a loan with a cash advance of more
1-15     than $100, the acquisition charge and the installment account
1-16     handling charge authorized under Section 342.252(3) are subject to
1-17     refund in accordance with Subchapter H.]
1-18           SECTION 2. This Act takes effect September 1, 2001, and
1-19     applies only to a loan made on or after that date.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 198 was passed by the House on March
         22, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 198 was passed by the Senate on May
         7, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor