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A BILL TO BE ENTITLED
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AN ACT
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relating to the maximum permitted rate of interest, sum of fees, and |
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other amounts due during a natural disaster declaration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 342, Finance Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. INTEREST RATES DURING NATURAL DISASTERS |
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Sec. 342.651. MAXIMUM INTEREST RATES DURING NATURAL |
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DISASTER. Unless a lower rate of interest is otherwise provided by |
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law, the maximum rate or amount of interest is 36 percent for a loan |
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entered into in an area subject to a declaration under Section |
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418.014, Government Code, before the termination of the |
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declaration. |
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SECTION 2. Subchapter G, Chapter 393, Finance Code, is |
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amended by adding Sections 393.629 and 393.630 to read as follows: |
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Sec. 393.629. MAXIMUM PERMITTED FEES, INTEREST, AND OTHER |
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AMOUNTS DUE UNDER EXTENSION OF CONSUMER CREDIT DURING NATURAL |
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DISASTER. The sum of all fees, interest, and other amounts in |
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excess of principal due under an extension of consumer credit in the |
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form of a deferred presentment transaction or motor vehicle title |
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loan that a credit access business obtains for a consumer or assists |
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a consumer in obtaining, entered into in an area subject to a |
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declaration under Section 418.014, Government Code, before the |
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termination of the declaration, may not exceed 36 percent of the |
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principal of that extension of consumer credit. |
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Sec. 393.630. RULES. The finance commission shall adopt |
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any rules necessary to implement Section 393.629. |
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SECTION 3. The changes in law made by this Act in adding |
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Sections 342.651 and 393.629, Finance Code, apply only to a loan or |
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extension of consumer credit, as applicable, made on or after the |
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effective date of this Act. A loan or extension of consumer credit |
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made before the effective date of this Act is governed by the law in |
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effect on the date the loan or extension of consumer credit was |
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made, and the former law is continued in effect for that purpose. |
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For purposes of this section, a refinance of a loan or extension of |
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consumer credit is considered made on the date the loan or extension |
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of consumer credit being refinanced was made. |
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SECTION 4. This Act takes effect September 1, 2019. |