| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R5093 ATP-D | |
| 2 | 2 | By: Gattis H.B. No. 3784 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the prohibition on charging a prepayment penalty for a | |
| 8 | 8 | home loan. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Subchapter B, Chapter 343, Finance Code, is | |
| 11 | 11 | amended by adding Section 343.106 to read as follows: | |
| 12 | 12 | Sec. 343.106. PREPAYMENT PENALTIES PROHIBITED. A lender | |
| 13 | 13 | may not make a home loan containing a provision for a prepayment | |
| 14 | 14 | penalty. | |
| 15 | 15 | SECTION 2. Sections 302.102 and 343.205, Finance Code, are | |
| 16 | 16 | repealed. | |
| 17 | 17 | SECTION 3. Section 343.106, Finance Code, as added by this | |
| 18 | 18 | Act, applies only to a home loan closed on or after the effective | |
| 19 | 19 | date of this Act. A home loan closed before the effective date of | |
| 20 | 20 | this Act is governed by the law in effect when the loan was closed, | |
| 21 | 21 | and the former law is continued in effect for that purpose. | |
| 22 | 22 | SECTION 4. This Act takes effect September 1, 2009. |