87R1016 SRA-D
 
  By: Miles S.B. No. 363
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting daily simple interest home loans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 343, Finance Code, is
  amended by adding Section 343.107 to read as follows:
         Sec. 343.107.  DAILY SIMPLE INTEREST HOME LOANS PROHIBITED.
  (a) In this section, "daily simple interest home loan" means a home
  loan that accrues interest daily on the outstanding balance of the
  loan.
         (b)  A lender may not make a daily simple interest home loan.
         SECTION 2.  Section 343.107, Finance Code, as added by this
  Act, applies only to a loan closed on or after the effective date of
  this Act.
         SECTION 3.  This Act takes effect September 1, 2021.