87R1016 SRA-D
By: Miles S.B. No. 363
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting daily simple interest home loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.107 to read as follows:
Sec. 343.107. DAILY SIMPLE INTEREST HOME LOANS PROHIBITED.
(a) In this section, "daily simple interest home loan" means a home
loan that accrues interest daily on the outstanding balance of the
loan.
(b) A lender may not make a daily simple interest home loan.
SECTION 2. Section 343.107, Finance Code, as added by this
Act, applies only to a loan closed on or after the effective date of
this Act.
SECTION 3. This Act takes effect September 1, 2021.