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A BILL TO BE ENTITLED
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AN ACT
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relating to authorized acquisition and delinquency charges for |
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certain consumer loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.252, Finance Code, is amended to |
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read as follows: |
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Sec. 342.252. ALTERNATE INTEREST CHARGE. Instead of the |
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charges authorized by Section 342.201, a loan contract may provide |
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for: |
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(1) on a cash advance of less than $30, an acquisition |
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charge that is not more than $1 for each $5 of the cash advance; |
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(2) on a cash advance equal to or more than $30 but not |
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more than $100: |
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(A) an acquisition charge that is not more than |
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the amount equal to one-tenth of the amount of the cash advance; and |
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(B) an installment account handling charge that |
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is not more than: |
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(i) $3 a month if the cash advance is not |
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more than $35; |
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(ii) $3.50 a month if the cash advance is |
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more than $35 but not more than $70; or |
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(iii) $4 a month if the cash advance is more |
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than $70; or |
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(3) on a cash advance of more than $100: |
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(A) an acquisition charge that is not more than |
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10 percent of the amount of the cash advance [$10]; and |
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(B) an installment account handling charge that |
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is not more than the ratio of $4 a month for each $100 of cash |
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advance. |
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SECTION 2. Section 342.257, Finance Code, is amended to |
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read as follows: |
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Sec. 342.257. DEFAULT CHARGE; DEFERMENT OF PAYMENT. The |
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provisions of Subchapter E relating to additional interest for |
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default and additional interest for the deferment of installments |
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apply to a loan made under this subchapter. Provided, that on a |
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loan contract in which the cash advance is $100 or more, instead of |
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additional interest for default under Subchapter E, the contract |
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may provide for a delinquency charge if any part of an installment |
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remains unpaid after the 10th day after the date on which the |
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installment is due, including Sundays and holidays. The |
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delinquency charge on a loan with a cash advance of $100 or more may |
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not exceed the greater of $20 [$10] or five cents for each $1 of the |
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delinquent installment. |
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SECTION 3. Section 342.259(a), Finance Code, is amended to |
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read as follows: |
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(a) Instead of the charges authorized by Sections 342.201 |
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and 342.252, a loan made under this subchapter with a maximum cash |
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advance computed under Subchapter C, Chapter 341, using a reference |
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base amount that is more than $100 but not more than $200, may |
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provide for: |
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(1) an acquisition charge that is not more than 10 |
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percent of the amount of the cash advance [$10]; and |
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(2) an installment account handling charge that is not |
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more than the ratio of $4 a month for each $100 of cash advance. |
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SECTION 4. The changes in law made by this Act apply only to |
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a loan made on or after the effective date of this Act. A loan made |
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before the effective date of this Act is governed by the law in |
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effect on the date the loan was made, and the former law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2013. |