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A BILL TO BE ENTITLED
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AN ACT
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relating to accounting and payoff statements for certain |
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seller-financed residential loans; providing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 343, Finance Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS |
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Sec. 343.301. APPLICATION. This subchapter applies only to |
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a seller-financed loan secured by a purchase money lien on |
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residential real property that is not a federally related mortgage |
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loan, as defined by 12 U.S.C. Section 2602. |
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Sec. 343.302. ANNUAL ACCOUNTING STATEMENT REQUIRED. (a) |
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The lender shall provide to the borrower an accounting statement in |
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January of each year for the term of the loan. If the lender mails |
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the statement to the borrower, the statement must be postmarked not |
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later than January 31. |
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(b) The accounting statement must include the following |
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information: |
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(1) the amount paid toward the outstanding balance of |
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the loan during the preceding calendar year, including separate |
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amounts showing the total amount applied to interest and the total |
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amount applied to principal; |
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(2) the remaining principal balance owed on the loan; |
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(3) the number of payments remaining on the loan; |
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(4) the amounts paid to taxing authorities on the |
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borrower's behalf if collected by the lender; and |
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(5) the amounts paid to insure the property on the |
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borrower's behalf if collected by the lender. |
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(c) Except as provided by Section 343.304, in addition to |
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any other legal and equitable remedy available, a lender under this |
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section who fails to comply with this section is liable to a |
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borrower who is injured by the violation for: |
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(1) a penalty in the amount of $500; |
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(2) actual damages; |
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(3) court costs; and |
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(4) reasonable attorney's fees. |
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Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding |
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related to a loan to which this subchapter applies, including an |
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action brought under Section 343.302(c), a loan payment is |
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considered to have been paid on the due date by the borrower if the |
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payment came due during a calendar year for which the lender did not |
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provide a required accounting statement to the borrower under |
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Section 343.302. |
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Sec. 343.304. OTHER PENALTIES AND LIABILITIES NOT |
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APPLICABLE. Chapter 349 does not apply to a violation of this |
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subchapter. |
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SECTION 2. Section 343.106, Finance Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) For purposes of providing a payoff statement required |
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under this section for a seller-financed loan to which Subchapter D |
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applies, a loan payment made to the lender is considered to have |
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been paid on the due date by the borrower if the payment came due |
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during a calendar year for which the lender did not provide a |
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required accounting statement to the borrower under Section |
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343.302. |
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SECTION 3. A lender is not required to provide an accounting |
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statement required by Section 343.302, Finance Code, as added by |
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this Act, before January 1, 2014. |
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SECTION 4. This Act takes effect September 1, 2013. |