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79R13530 DWS-F


By:  Pickett, Chavez, Guillen, Quintanilla                        H.B. No. 1547

Substitute the following for H.B. No. 1547:                                   

By:  Solomons                                                 C.S.H.B. No. 1547



A BILL TO BE ENTITLED

AN ACT

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 
follows:
	(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[, whether 
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.