Bill Text: TX HB1707 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to capping interest rates in executory contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-04 - Referred to Business & Industry [HB1707 Detail]
Download: Texas-2013-HB1707-Introduced.html
By: Farrar | H.B. No. 1707 |
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Relating to capping interest rates in executory contracts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sec. 5.073(a), Property Code, is amended to read | ||
as follows: | ||
(a) A seller may not include as a term of the executory | ||
contract a provision that: | ||
(1) imposes an additional late-payment fee that | ||
exceeds the lesser of: | ||
(A) eight percent of the monthly payment under | ||
the contract; or | ||
(B) the actual administrative cost of processing | ||
the late payment; | ||
(2) prohibits the purchaser from pledging the | ||
purchaser's interest in the property as security to obtain a loan to | ||
place improvements, including utility improvements or fire | ||
protection improvements, on the property; | ||
(3) imposes a prepayment penalty or any similar fee if | ||
the purchaser elects to pay the entire amount due under the contract | ||
before the scheduled payment date under the contract; | ||
(4) forfeits an option fee or other option payment | ||
paid under the contract for a late payment |
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(5) increases the purchase price, imposes a fee or | ||
charge of any type, or otherwise penalizes a purchaser leasing | ||
property with an option to buy the property for requesting repairs | ||
or exercising any other right under Chapter 92; or | ||
(6) imposes an interest rate that exceeds twelve | ||
percent. | ||
(b) A provision of the executory contract that purports to | ||
waive a right or exempt a party from a liability or duty under this | ||
subchapter is void. | ||
SECTION 2. This Act takes effect September 1, 2013. |