83R1782 ATP-F
By: Davis S.J.R. No. 41
A JOINT RESOLUTION
proposing a constitutional amendment providing that certain fees
charged in connection with certain consumer loans are attributable
to the lender and included in the computation of interest for
purposes of regulating interest rates.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11, Article XVI, Texas Constitution, is
amended to read as follows:
Sec. 11. (a) The Legislature shall have authority to define
interest and fix maximum rates of interest; provided, however, in
the absence of legislation fixing maximum rates of interest all
contracts for a greater rate of interest than ten per centum (10%)
per annum shall be deemed usurious; provided, further, that in
contracts where no rate of interest is agreed upon, the rate shall
not exceed six per centum (6%) per annum.
(b) Any fee charged by a third party to a borrower for
arranging or otherwise facilitating a loan or other extension of
credit that is extended primarily for personal, family, or
household purposes and that is secured by a non-purchase money
security interest in personal property or unsecured is attributable
to the lender as interest for purposes of determining whether the
rate of interest on the loan is usurious or otherwise exceeds the
maximum rate of interest allowed by law.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 5, 2013.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing that fees
charged by a third party in connection with arranging small
consumer loans are included in the computation of interest for
purposes of regulating interest rates."