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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting daily simple interest home loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.107 to read as follows: |
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Sec. 343.107. DAILY SIMPLE INTEREST HOME LOANS PROHIBITED. |
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(a) In this section, "daily simple interest home loan" means a home |
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loan that accrues interest daily on the outstanding balance of the |
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loan. |
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(b) A lender may not make a daily simple interest home loan. |
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SECTION 2. Section 343.107, Finance Code, as added by this |
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Act, applies only to a loan closed on or after the effective date of |
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this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |