Bill Text: TX SB186 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the maximum permitted rate of interest, sum of fees, and other amounts due during a natural disaster declaration.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2019-02-01 - Referred to Business & Commerce [SB186 Detail]
Download: Texas-2019-SB186-Introduced.html
| 86R833 GRM-D | ||
| By: Miles | S.B. No. 186 | |
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| relating to the maximum permitted rate of interest, sum of fees, and | ||
| other amounts due during a natural disaster declaration. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 342, Finance Code, is amended by adding | ||
| Subchapter N to read as follows: | ||
| SUBCHAPTER N. INTEREST RATES DURING NATURAL DISASTERS | ||
| Sec. 342.651. MAXIMUM INTEREST RATES DURING NATURAL | ||
| DISASTER. Unless a lower rate of interest is otherwise provided by | ||
| law, the maximum rate or amount of interest is 36 percent for a loan | ||
| entered into in an area subject to a declaration under Section | ||
| 418.014, Government Code, before the termination of the | ||
| declaration. | ||
| SECTION 2. Subchapter G, Chapter 393, Finance Code, is | ||
| amended by adding Sections 393.629 and 393.630 to read as follows: | ||
| Sec. 393.629. MAXIMUM PERMITTED FEES, INTEREST, AND OTHER | ||
| AMOUNTS DUE UNDER EXTENSION OF CONSUMER CREDIT DURING NATURAL | ||
| DISASTER. The sum of all fees, interest, and other amounts in | ||
| excess of principal due under an extension of consumer credit in the | ||
| form of a deferred presentment transaction or motor vehicle title | ||
| loan that a credit access business obtains for a consumer or assists | ||
| a consumer in obtaining, entered into in an area subject to a | ||
| declaration under Section 418.014, Government Code, before the | ||
| termination of the declaration, may not exceed 36 percent of the | ||
| principal of that extension of consumer credit. | ||
| Sec. 393.630. RULES. The finance commission shall adopt | ||
| any rules necessary to implement Section 393.629. | ||
| SECTION 3. The changes in law made by this Act in adding | ||
| Sections 342.651 and 393.629, Finance Code, apply only to a loan or | ||
| extension of consumer credit, as applicable, made on or after the | ||
| effective date of this Act. A loan or extension of consumer credit | ||
| made before the effective date of this Act is governed by the law in | ||
| effect on the date the loan or extension of consumer credit was | ||
| made, and the former law is continued in effect for that purpose. | ||
| For purposes of this section, a refinance of a loan or extension of | ||
| consumer credit is considered made on the date the loan or extension | ||
| of consumer credit being refinanced was made. | ||
| SECTION 4. This Act takes effect September 1, 2019. | ||
