H.B. No. 1547
relating to the form of the loan contract and related documents for
a consumer loan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 341.502, Finance Code, is
amended to read as follows:
Sec. 341.502. FORM OF LOAN CONTRACT AND RELATED DOCUMENTS.
SECTION 2. Section 341.502, Finance Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
(a) A contract for a loan under Chapter 342, a retail
installment transaction under Chapter 348, or a home equity loan
regulated by the Office of Consumer Credit Commissioner[
in English or Spanish,] must be:
(1) written in plain language designed to be easily
understood by the average consumer; and
(2) [ . The contract must be] printed in an easily
readable font and type size.
(a-1) If the terms of the agreement for a loan under
Subsection (a) were negotiated in Spanish, a copy of a summary of
those terms and other pertinent information shall be provided to
the debtor in Spanish in a form identical to disclosures required
for a closed-end transaction under 12 C.F.R. Section 226.18.
SECTION 3. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 1547 was passed by the House on May
10, 2005, by a non-record vote.
Chief Clerk of the House
I certify that H.B. No. 1547 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate