By Carona                                              S.B. No. 105
         77R1197 MTB-D                           
                                A BILL TO BE ENTITLED
 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 applies only to a loan made on or after
1-19     the effective date of this Act.
1-20           SECTION 3. This Act takes effect immediately if it receives a
1-21     vote of two-thirds of all the members elected to each house, as
1-22     provided by Section 39, Article III, Texas Constitution.  If this
1-23     Act does not receive the vote necessary for immediate effect, this
1-24     Act takes effect September 1, 2001.