| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 85R4817 EES-F | |
| 2 | 2 | By: Longoria H.B. No. 2977 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to methods of computing interest charges on certain | |
| 8 | 8 | consumer loans. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Section 342.201, Finance Code, is amended by | |
| 11 | 11 | adding Subsection (e-1) to read as follows: | |
| 12 | 12 | (e-1) The interest charge under Subsection (e) must be | |
| 13 | 13 | contracted for, charged, or received using the scheduled | |
| 14 | 14 | installment earnings method or the true daily earnings method under | |
| 15 | 15 | one of the following methods: | |
| 16 | 16 | (1) applying the applicable daily rate to each part of | |
| 17 | 17 | the unpaid principal balance corresponding to the brackets | |
| 18 | 18 | described by Subsection (e) for the actual or scheduled number of | |
| 19 | 19 | days during a payment period; or | |
| 20 | 20 | (2) applying a single equivalent daily rate to the | |
| 21 | 21 | unpaid principal balance for the actual or scheduled number of days | |
| 22 | 22 | during a payment period, where the single equivalent daily rate is | |
| 23 | 23 | determined at the inception of the loan using the scheduled | |
| 24 | 24 | installment earnings method and would earn an amount of interest | |
| 25 | 25 | authorized under Subsection (e) if the debt were paid to maturity | |
| 26 | 26 | according to the schedule of payments. | |
| 27 | 27 | SECTION 2. This Act takes effect September 1, 2017. |