Texas 2013 - 83rd Regular

Texas Senate Bill SB952 Compare Versions

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1	1	By: Carona S.B. No. 952
2	2	(In the Senate - Filed February 28, 2013; March 12, 2013,
3	3	read first time and referred to Committee on Business and Commerce;
4	4	March 21, 2013, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 9, Nays 0; March 21, 2013,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 952 By: Carona
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to interest on commercial loans.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 306.002, Finance Code, is amended by
15	15	adding Subsection (c) to read as follows:
16	16	(c) The provisions of this chapter providing authorizations
17	17	with respect to certain transactions do not affect or negatively
18	18	impact any rules of law applicable either to other transactions
19	19	subject to the chapter or to any transactions not subject to this
20	20	chapter.
21	21	SECTION 2. Section 306.003, Finance Code, is amended to
22	22	read as follows:
23	23	Sec. 306.003. COMPUTATION OF LOAN TERMS [TERM]. (a) In
24	24	addition to any other method otherwise permitted under this title,
25	25	a creditor and an obligor may agree to compute an annual interest
26	26	rate on a commercial loan on a 365/360 basis or a 366/360 basis, as
27	27	applicable, determined by applying the ratio of the percentage
28	28	annual interest rate agreed to by the parties over a year of 360
29	29	days, multiplied by the outstanding principal balance, multiplied
30	30	by the actual number of days the principal balance is outstanding.
31	31	A creditor and an obligor may also agree to compute the term and
32	32	rate of a commercial loan based on a 360-day year consisting of 12
33	33	30-day months. Each interest [For purposes of this chapter, each]
34	34	rate ceiling under Chapters 302 and 303 expressed as a rate per year
35	35	may mean a rate per year computed in accordance with this section
36	36	[consisting of 360 days and of 12 30-day months].
37	37	(b) A creditor and an obligor may agree that one or more
38	38	payments of interest due or that are scheduled to be due with
39	39	respect to a commercial loan may be paid on a periodic basis when
40	40	due wholly or partly by adding to the principal balance of the loan
41	41	the amount of unpaid interest due or scheduled to be due, regardless
42	42	of whether the interest added to the principal balance is evidenced
43	43	by an existing or a separate promissory note or other agreement. On
44	44	and after the date an amount of interest is added to the principal
45	45	balance under this subsection, that amount no longer constitutes
46	46	interest, but instead constitutes part of the principal for
47	47	purposes of calculating the maximum lawful rate or amount of
48	48	interest on the loan.
49	49	SECTION 3. The changes in law made by this Act apply only to
50	50	a loan agreement entered into on or after the effective date of this
51	51	Act. A loan agreement entered into before the effective date of
52	52	this Act is governed by the law in effect on the date the agreement
53	53	was entered into, and the former law is continued in effect for that
54	54	purpose.
55	55	SECTION 4. This Act takes effect September 1, 2013.
56	56	* * * * *