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