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A BILL TO BE ENTITLED
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AN ACT
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relating to the prohibition on charging a prepayment penalty for a |
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home loan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.106 to read as follows: |
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Sec. 343.106. PREPAYMENT PENALTIES PROHIBITED. A lender |
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may not make a home loan containing a provision for a prepayment |
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penalty. |
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SECTION 2. Sections 302.102 and 343.205, Finance Code, are |
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repealed. |
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SECTION 3. Section 343.106, Finance Code, as added by this |
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Act, applies only to a home loan closed on or after the effective |
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date of this Act. A home loan closed before the effective date of |
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this Act is governed by the law in effect when the loan was closed, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |