SRC- LBB S.B. 1430 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1430
By: Averitt
Business & Commerce
8/4/2003
Enrolled


DIGEST AND PURPOSE 

Currently, Chapter 342 of the Finance Code does not authorize lenders to
charge late fees for late payment on secondary mortgage loans.  Late
charges are authorized on every type of consumer transaction except
secondary mortgage loans.  S.B. 1430 authorizes additional interest to be
charged for default on certain secondary mortgage loans. 

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 the heading to Section 342.302, Finance Code, to read
as follows: 

Sec.  342.302.  ADDITIONAL INTEREST FOR DEFAULT:  REGULAR TRANSACTION OR
TRANSACTION INCLUDING SIMPLE INTEREST. 

SECTION 2.  Amends Section 342.302, Finance Code, by amending Subsection
(c) and adding Subsection (e), as follows: 

 (c)  Includes the phrase "under this section" in relation to additional
interest. 

(e)  Authorizes a secondary mortgage loan that includes simple interest to
provide for  additional interest for default if any part of an installment
remains unpaid after the tenth day after the date on which the installment
is due, including Sundays and holidays. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.