1-1     By:  Carona                                            S.B. No. 105
 1-2           (In the Senate - Filed November 14, 2000; January 11, 2001,
 1-3     read first time and referred to Committee on Business and Commerce;
 1-4     February 7, 2001, reported favorably by the following vote:  Yeas
 1-5     6, Nays 1; February 7, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the refund of certain consumer loan acquisition
 1-9     charges.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 342.256, Finance Code, is amended to read
1-12     as follows:
1-13           Sec. 342.256.  REFUND.  (a)  An acquisition charge authorized
1-14     under Section 342.252(1), [or] (2), or (3) is considered to be
1-15     earned at the time a loan is made and is not subject to refund.
1-16           (b)  On the prepayment of a loan with a cash advance of $30
1-17     or more [but not more than $100], the installment account handling
1-18     charge authorized under Section 342.252(2) or (3) is subject to
1-19     refund in accordance with Subchapter H.
1-20           [(c)  On the prepayment of a loan with a cash advance of more
1-21     than $100, the acquisition charge and the installment account
1-22     handling charge authorized under Section 342.252(3) are subject to
1-23     refund in accordance with Subchapter H.]
1-24           SECTION 2.  This Act applies only to a loan made on or after
1-25     the effective date of this Act.
1-26           SECTION 3.  This Act takes effect immediately if it receives
1-27     a vote of two-thirds of all the members elected to each house, as
1-28     provided by Section 39, Article III, Texas Constitution.  If this
1-29     Act does not receive the vote necessary for immediate effect, this
1-30     Act takes effect September 1, 2001.
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