This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                


By:  Nixon (Senate Sponsor - Armbrister)                          H.B. No. 2987
	(In the Senate - Received from the House April 18, 2005; 
April 19, 2005, read first time and referred to Committee on 
Business and Commerce; May 2, 2005, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 5, 
Nays 0; May 2, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2987                                   By:  Carona


A BILL TO BE ENTITLED

AN ACT


relating to funding advanced in connection with a lawsuit that is at 
a rate above the usurious interest prohibition.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 6, Civil Practice and Remedies Code, is 
amended by adding Chapter 148 to read as follows:
	CHAPTER 148.  PROHIBITION ON LAWSUIT ADVANCE FUNDING FOR

USURIOUS INTEREST
	Sec. 148.001.  PROHIBITION ON LAWSUIT ADVANCE FUNDING FOR 
USURIOUS INTEREST.  (a)  All funding advanced to a party to a 
lawsuit, the repayment of which is contingent upon that party's 
recovery in the lawsuit, is a loan subject to the usurious interest 
prohibition in Section 302.001, Finance Code, and the penalties 
prescribed by Chapter 305, Finance Code.  A contract to provide such 
funding that allows a rate of return in excess of the usurious 
interest prohibition in Section 302.001, Finance Code, is and 
always has been against the public policy of this state.
	(b)  This section does not apply to contracts entered into 
between an attorney and the attorney's client in connection with 
the provision of legal services.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.



* * * * *