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A BILL TO BE ENTITLED
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AN ACT
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relating to the administrative fee authorized for certain consumer |
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loans; changing the amount of the fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.201(f), Finance Code, is amended to |
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read as follows: |
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(f) A loan contract under this subchapter may provide for an |
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administrative fee in an amount not to exceed five percent of the |
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total amount financed or $100, whichever is less [$25 for a loan of
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more than $1,000 or $20 for a loan of $1,000 or less]. The |
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administrative fee is considered earned when the loan is made or |
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refinanced and is not subject to refund. A lender refinancing the |
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loan may not contract for or receive an administrative fee for the |
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loan more than once in any 180-day period, except that if the loan |
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has an interest charge authorized by Subsection (e) the lender may |
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not contract for or receive the administrative fee more than once in |
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any 365-day period. One dollar of each administrative fee may be |
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deposited with the comptroller for use in carrying out the finance |
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commission's responsibilities under Section 11.3055. |
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SECTION 2. Section 342.201(f), Finance Code, as amended by |
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this Act, applies to a loan that is made or refinanced on or after |
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the effective date of this Act. A loan that is made or refinanced |
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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 or refinanced, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |