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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions on the authority of certain persons to act |
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as or on behalf of, or associate with, a lender. |
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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, broker, servicer, or collector |
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for another person unless both persons comply with this subtitle |
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and rules adopted under Section 342.007 with respect to deferred |
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presentment transactions. This subsection applies regardless of |
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whether both persons are subject to regulation under this subtitle |
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or another law of this state. An agreement made in connection with |
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a deferred presentment transaction is void to the extent the |
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agreement waives the application of this subsection or applies the |
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law of a jurisdiction other than this state to avoid compliance with |
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this subtitle or rules adopted under Section 342.007 in a |
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transaction described by this subsection. For the purposes of |
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Chapter 349, a person who makes or offers 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, broker, servicer, or collector |
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for another person is considered to contract for interest. |
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SECTION 2. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Section 393.308 to read as follows: |
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Sec. 393.308. ACTING AS OR ASSOCIATING WITH LENDER. (a) A |
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credit services organization may not facilitate or assist in |
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obtaining credit for a consumer if: |
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(1) the organization is the lender; |
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(2) the organization or an officer, director, or |
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employee of the organization is in any way related to the lender or |
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an officer, director, or employee of the lender; |
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(3) the lender or the organization is an affiliate of |
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the other, or the lender and the organization are owned or |
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controlled by the same holding company; |
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(4) the organization retains or receives an economic |
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interest in the loan revenue; |
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(5) the organization services or collects the loan on |
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behalf of the lender; or |
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(6) the organization provides compensation to or |
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shares resources with the lender. |
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(b) A credit services organization may not use a scheme, |
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device, or contrivance to evade the application of this section. |
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SECTION 3. This Act takes effect September 1, 2007. |