| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the extension of consumer credit to certain members of |
|
|
the Texas National Guard and armed forces of the United States and |
|
|
their dependents; providing a penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
|
|
adding Chapter 353 to read as follows: |
|
|
CHAPTER 353. EXTENSION OF CONSUMER CREDIT TO SERVICEMEMBERS OR |
|
|
THEIR DEPENDENTS |
|
|
Sec. 353.001. DEFINITIONS. In this chapter: |
|
|
(1) "Consumer credit" has the meaning assigned by 10 |
|
|
U.S.C. Section 987. |
|
|
(2) "Creditor" means a person who: |
|
|
(A) is engaged in the business of extending |
|
|
consumer credit; or |
|
|
(B) transacts, negotiates, or services an |
|
|
extension of consumer credit. |
|
|
(3) "Servicemember" means a member of the United |
|
|
States armed forces or a member of the Texas National Guard called |
|
|
to federal active duty. |
|
|
(4) "Dependent," with respect to a servicemember, |
|
|
means the servicemember's spouse or dependent child. |
|
|
(5) "Dependent child" means a person who is unmarried |
|
|
and who: |
|
|
(A) is under 18 years of age; |
|
|
(B) before the person's 18th birthday, became |
|
|
permanently incapable of self-support; or |
|
|
(C) is under 23 years of age and is pursuing a |
|
|
course of instruction at an approved educational institution. |
|
|
Sec. 353.002. INAPPLICABILITY OF CHAPTER. This chapter |
|
|
does not apply to: |
|
|
(1) an insured depository institution, as that term is |
|
|
defined by Section 3, Federal Deposit Insurance Act (12 U.S.C. |
|
|
Section 1813); or |
|
|
(2) an insured credit union, as that term is defined by |
|
|
Section 101, Federal Credit Union Act (12 U.S.C. Section 1752). |
|
|
Sec. 353.003. TERMS OF CONSUMER CREDIT EXTENDED TO CERTAIN |
|
|
SERVICEMEMBERS AND DEPENDENTS; CERTAIN BENEFITS AND PROTECTIONS. A |
|
|
creditor who extends consumer credit to a servicemember or a |
|
|
servicemember's dependent not covered by 10 U.S.C. Section 987, as |
|
|
that law existed on September 1, 2011, shall apply to those persons |
|
|
the same benefits and protections that the creditor is required to |
|
|
apply to a covered member of the armed forces or the covered |
|
|
member's dependent under that federal law and regulations adopted |
|
|
pursuant to that law. |
|
|
Sec. 353.004. CRIMINAL PENALTY. (a) A creditor commits an |
|
|
offense if the creditor knowingly violates 10 U.S.C. Section 987, |
|
|
as that law existed on September 1, 2011, or a federal regulation |
|
|
adopted pursuant to that law. An offense under this subsection is a |
|
|
Class A misdemeanor. |
|
|
(b) A creditor commits an offense if the creditor knowingly |
|
|
violates Section 353.003. An offense under this subsection is a |
|
|
Class A misdemeanor. |
|
|
Sec. 353.005. REMEDIES AND ADDITIONAL PENALTIES. (a) The |
|
|
remedies and rights available under this chapter are in addition to |
|
|
and do not preclude any remedy otherwise available under law to a |
|
|
servicemember or a servicemember's dependent, including any award |
|
|
for consequential or punitive damages. |
|
|
(b) On violation of this chapter, a creditor is subject to |
|
|
all remedies and penalties authorized by Chapter 14. |
|
|
SECTION 2. Chapter 353, Finance Code, as added by this Act, |
|
|
applies only to an extension of consumer credit made on or after the |
|
|
effective date of this Act. An extension of consumer credit made |
|
|
before the effective date of this Act is governed by the law in |
|
|
effect on the date the extension of consumer credit was made, and |
|
|
the former law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2011. |