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A BILL TO BE ENTITLED
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AN ACT
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relating to certain extensions of consumer credit facilitated by a |
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credit access business for certain military personnel or their |
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dependents. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.625, Finance Code, is amended to |
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read as follows: |
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Sec. 393.625. MILITARY BORROWERS. (a) An extension of |
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consumer credit [described by Section 393.602(a)] that is obtained |
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by a credit access business for a member of the United States |
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military or a dependent of a member of the United States military or |
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that the business assisted that person in obtaining must comply |
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with 10 U.S.C. Section 987 and any regulations adopted under that |
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law, to the extent applicable. |
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(b) With respect to a consumer who is a "covered member" or a |
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"dependent" of a covered member, as those terms are defined by 10 |
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U.S.C. Section 987, the term of an extension of consumer credit in |
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the form of a deferred presentment transaction or motor vehicle |
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title loan, including all renewals and refinances, obtained for the |
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consumer by a credit access business or that a credit access |
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business assists the consumer in obtaining may not exceed: |
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(1) 90 days, if the debt is a deferred presentment |
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transaction; or |
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(2) 180 days, if the debt is a motor vehicle title |
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loan. |
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(c) With respect to a consumer who is a member of the reserve |
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component of the United States armed forces, including the national |
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guard, or a dependent of those reserve members, the term of an |
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extension of consumer credit in the form of a deferred presentment |
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transaction or motor vehicle title loan, including all renewals and |
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refinances, obtained for the consumer by a credit access business |
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or that a credit access business assists the consumer in obtaining |
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may not exceed: |
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(1) 90 days, if the debt is a deferred presentment |
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transaction; or |
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(2) 180 days, if the debt is a motor vehicle title |
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loan. |
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(d) For purposes of Subsection (c), "dependent," with |
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respect to a member of the reserve component of the United States |
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armed forces, means the spouse or a child of the member. |
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SECTION 2. The changes in law made by this Act apply only to |
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an extension of consumer credit made on or after the effective date |
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of this Act. An extension of consumer credit made before the |
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effective date of this Act is governed by the law in effect on the |
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date the extension of consumer credit was made, and the former law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |