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A BILL TO BE ENTITLED
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AN ACT
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relating to false, misleading, or deceptive advertising made in |
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connection with a reverse mortgage loan agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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adding Chapter 344 to read as follows: |
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CHAPTER 344. REVERSE MORTGAGE LOANS |
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Sec. 344.001. FALSE, MISLEADING, OR DECEPTIVE ADVERTISING. |
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(a) A person may not, in any manner, advertise or cause to be |
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advertised a false, misleading, or deceptive statement or |
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representation made to induce a potential borrower into applying |
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for or entering into a reverse mortgage loan agreement. |
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(b) A statement or representation is misleading or |
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deceptive under Subsection (a) if the statement or representation |
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has the capacity or tendency to mislead or deceive a potential |
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borrower, considering: |
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(1) the overall impression that the statement or |
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representation reasonably creates; and |
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(2) the particular type of potential borrower to which |
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the statement or representation is directed and whether the |
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statement or representation may be reasonably comprehended by that |
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potential borrower. |
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(c) A violation of this section is a deceptive trade |
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practice under Subchapter E, Chapter 17, Business & Commerce Code, |
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and is actionable under that subchapter. |
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SECTION 2. This Act takes effect September 1, 2021. |