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A JOINT RESOLUTION
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proposing a constitutional amendment providing that certain fees |
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charged in connection with certain consumer loans are attributable |
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to the lender and included in the computation of interest for |
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purposes of regulating interest rates. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11, Article XVI, Texas Constitution, is |
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amended to read as follows: |
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Sec. 11. (a) The Legislature shall have authority to define |
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interest and fix maximum rates of interest; provided, however, in |
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the absence of legislation fixing maximum rates of interest all |
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contracts for a greater rate of interest than ten per centum (10%) |
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per annum shall be deemed usurious; provided, further, that in |
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contracts where no rate of interest is agreed upon, the rate shall |
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not exceed six per centum (6%) per annum. |
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(b) Any fee charged by a third party to a borrower for |
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arranging or otherwise facilitating a loan or other extension of |
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credit that is extended primarily for personal, family, or |
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household purposes and that is secured by a non-purchase money |
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security interest in personal property or unsecured is attributable |
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to the lender as interest for purposes of determining whether the |
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rate of interest on the loan is usurious or otherwise exceeds the |
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maximum rate of interest allowed by law. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 5, 2013. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment providing that fees |
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charged by a third party in connection with arranging small |
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consumer loans are included in the computation of interest for |
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purposes of regulating interest rates." |