79R2378 DWS-D

By:  Martinez                                                     H.B. No. 806



A BILL TO BE ENTITLED

AN ACT

relating to a retail installment contract or retail charge 
agreement that provides for payment of no time price differential 
or interest for a stated period.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 345, Finance Code, is 
amended by adding Section 345.358 to read as follows:
	Sec. 345.358.  CONTRACT OR AGREEMENT PROVIDING FOR PERIOD 
WITHOUT TIME PRICE DIFFERENTIAL OR INTEREST.  (a) This section 
applies only to a retail installment contract or retail charge 
agreement that provides that no time price differential or interest 
is charged if the entire principal balance is paid on or before a 
certain due date.
	(b)  The retail seller shall:                                           
		(1)  provide in the contract or agreement that:                        
			(A)  any payments required before the date 
provided under Subsection (a) are substantially equal and due 
monthly; and
			(B)  each required monthly payment is due on the 
same day of the month as the due date provided under Subsection (a); 
and
		(2)  provide to the retail buyer a written document, 
separate from the contract or agreement, that gives conspicuous 
notice of:
			(A)  the due date provided under Subsection (a); 
and                
			(B)  the time price differential or interest that 
will be charged if the entire principal balance is not paid on or 
before that date.
	SECTION 2.  The change in law made by this Act applies only 
to a retail installment contract or retail charge agreement entered 
into on or after the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.