By Deshotel                                           H.B. No. 2714
         77R5352 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a cash advance made or issued in connection with a
 1-3     credit card agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter C, Chapter 346, Finance Code, is
 1-6     amended by adding Section 346.206 to read as follows:
 1-7           Sec. 346.206.  CASH ADVANCE. In connection with a revolving
 1-8     credit account, a creditor shall apply a payment made on the
 1-9     account first to the unpaid balance of any cash advance made or
1-10     issued with respect to the account.
1-11           SECTION 2. This Act takes effect September 1, 2001, and
1-12     applies only to a cash advance transaction made pursuant to an
1-13     open-end account credit agreement under which credit card
1-14     transactions are made that is entered into, amended, or renewed on
1-15     or after the effective date of this Act.