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A BILL TO BE ENTITLED
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AN ACT
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relating to making a cash advance under a deferred presentment |
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transaction in conjunction with another person. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.008, Finance Code, is amended to |
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read as follows: |
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Sec. 342.008. ATTEMPT TO EVADE LAW. (a) A person who is a |
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party to a deferred presentment transaction may not evade the |
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application of this subtitle or a rule adopted under this |
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subchapter by use of any device, subterfuge, or pretense. |
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Characterization of a required fee as a purchase of a good or |
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service in connection with a deferred presentment transaction is a |
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device, subterfuge, or pretense for the purposes of this section. |
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(b) A person may not make or offer to make a cash advance |
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under a deferred presentment transaction on behalf of, in |
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conjunction with, or as an agent for another person unless both |
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persons comply with this subtitle and rules adopted under Section |
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342.007 with respect to deferred presentment transactions. This |
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subsection applies regardless of whether both persons are subject |
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to regulation under this subtitle or another law of this state. An |
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agreement made in connection with a deferred presentment |
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transaction is void to the extent the agreement waives the |
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application of this subsection or applies the law of a jurisdiction |
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other than this state to avoid compliance with this subtitle or |
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rules adopted under Section 342.007 in a transaction described by |
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this subsection. For the purposes of Chapter 349, a person who |
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makes or offers to make a cash advance under a deferred presentment |
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transaction on behalf of, in conjunction with, or as an agent for |
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another person is considered to contract for interest. |
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SECTION 2. This Act takes effect September 1, 2007. |