| 1 | 1 | | 86R833 GRM-D |
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| 2 | 2 | | By: Miles S.B. No. 186 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the maximum permitted rate of interest, sum of fees, and |
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| 8 | 8 | | other amounts due during a natural disaster declaration. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 342, Finance Code, is amended by adding |
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| 11 | 11 | | Subchapter N to read as follows: |
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| 12 | 12 | | SUBCHAPTER N. INTEREST RATES DURING NATURAL DISASTERS |
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| 13 | 13 | | Sec. 342.651. MAXIMUM INTEREST RATES DURING NATURAL |
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| 14 | 14 | | DISASTER. Unless a lower rate of interest is otherwise provided by |
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| 15 | 15 | | law, the maximum rate or amount of interest is 36 percent for a loan |
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| 16 | 16 | | entered into in an area subject to a declaration under Section |
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| 17 | 17 | | 418.014, Government Code, before the termination of the |
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| 18 | 18 | | declaration. |
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| 19 | 19 | | SECTION 2. Subchapter G, Chapter 393, Finance Code, is |
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| 20 | 20 | | amended by adding Sections 393.629 and 393.630 to read as follows: |
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| 21 | 21 | | Sec. 393.629. MAXIMUM PERMITTED FEES, INTEREST, AND OTHER |
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| 22 | 22 | | AMOUNTS DUE UNDER EXTENSION OF CONSUMER CREDIT DURING NATURAL |
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| 23 | 23 | | DISASTER. The sum of all fees, interest, and other amounts in |
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| 24 | 24 | | excess of principal due under an extension of consumer credit in the |
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| 25 | 25 | | form of a deferred presentment transaction or motor vehicle title |
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| 26 | 26 | | loan that a credit access business obtains for a consumer or assists |
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| 27 | 27 | | a consumer in obtaining, entered into in an area subject to a |
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| 28 | 28 | | declaration under Section 418.014, Government Code, before the |
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| 29 | 29 | | termination of the declaration, may not exceed 36 percent of the |
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| 30 | 30 | | principal of that extension of consumer credit. |
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| 31 | 31 | | Sec. 393.630. RULES. The finance commission shall adopt |
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| 32 | 32 | | any rules necessary to implement Section 393.629. |
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| 33 | 33 | | SECTION 3. The changes in law made by this Act in adding |
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| 34 | 34 | | Sections 342.651 and 393.629, Finance Code, apply only to a loan or |
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| 35 | 35 | | extension of consumer credit, as applicable, made on or after the |
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| 36 | 36 | | effective date of this Act. A loan or extension of consumer credit |
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| 37 | 37 | | made before the effective date of this Act is governed by the law in |
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| 38 | 38 | | effect on the date the loan or extension of consumer credit was |
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| 39 | 39 | | made, and the former law is continued in effect for that purpose. |
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| 40 | 40 | | For purposes of this section, a refinance of a loan or extension of |
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| 41 | 41 | | consumer credit is considered made on the date the loan or extension |
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| 42 | 42 | | of consumer credit being refinanced was made. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2019. |
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