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79R5515 DWS-F

By:  Pickett                                                      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(a), Finance Code, is amended 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, and all 
documents related to the contract that include terms of repayment
[whether in English or Spanish], must be:
		(1)  written in plain language designed to be easily 
understood by the average consumer;
		(2)  written in the language in which the terms of the 
loan were negotiated; and
		(3)  [.  The contract must be] printed in an easily 
readable font and type size.
	SECTION 3.  This Act takes effect September 1, 2005.