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A BILL TO BE ENTITLED
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AN ACT
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relating to methods of computing interest charges on certain |
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consumer loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.201, Finance Code, is amended by |
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adding Subsection (e-1) to read as follows: |
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(e-1) The interest charge under Subsection (e) must be |
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contracted for, charged, or received using the scheduled |
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installment earnings method or the true daily earnings method under |
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one of the following methods: |
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(1) applying the applicable daily rate to each part of |
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the unpaid principal balance corresponding to the brackets |
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described by Subsection (e) for the actual or scheduled number of |
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days during a payment period; or |
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(2) applying a single equivalent daily rate to the |
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unpaid principal balance for the actual or scheduled number of days |
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during a payment period, where the single equivalent daily rate is |
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determined at the inception of the loan using the scheduled |
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installment earnings method and would earn an amount of interest |
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authorized under Subsection (e) if the debt were paid to maturity |
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according to the schedule of payments. |
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SECTION 2. This Act takes effect September 1, 2019. |