86R11039 GRM-F
 
  By: Longoria, Murphy H.B. No. 3855
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to methods of computing interest charges on certain
  consumer loans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 342.201, Finance Code, is amended by
  adding Subsection (e-1) to read as follows:
         (e-1)  The interest charge under Subsection (e) must be
  contracted for, charged, or received using the scheduled
  installment earnings method or the true daily earnings method under
  one of the following methods:
               (1)  applying the applicable daily rate to each part of
  the unpaid principal balance corresponding to the brackets
  described by Subsection (e) for the actual or scheduled number of
  days during a payment period; or
               (2)  applying a single equivalent daily rate to the
  unpaid principal balance for the actual or scheduled number of days
  during a payment period, where the single equivalent daily rate is
  determined at the inception of the loan using the scheduled
  installment earnings method and would earn an amount of interest
  authorized under Subsection (e) if the debt were paid to maturity
  according to the schedule of payments.
         SECTION 2.  This Act takes effect September 1, 2019.