| 1 | 1 | | 89R6240 MLH-D |
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| 2 | 2 | | By: Lambert H.B. No. 4339 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to increasing the interest rate of certain consumer loans. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 342.201(e), Finance Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (e) A loan contract under this chapter that is not secured |
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| 14 | 14 | | by real property may provide for a rate or amount of interest |
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| 15 | 15 | | computed using the true daily earnings method or the scheduled |
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| 16 | 16 | | installment earnings method that does not exceed: |
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| 17 | 17 | | (1) 36 [30] percent a year on that part of the cash |
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| 18 | 18 | | advance that is less than or equal to the amount computed under |
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| 19 | 19 | | Subchapter C, Chapter 341, using the reference base amount of $500; |
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| 20 | 20 | | (2) 30 [24] percent a year on that part of the cash |
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| 21 | 21 | | advance that is more than the amount computed for Subdivision (1) |
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| 22 | 22 | | but less than or equal to an amount computed under Subchapter C, |
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| 23 | 23 | | Chapter 341, using the reference base amount of $1,050; and |
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| 24 | 24 | | (3) 24 [18] percent a year on that part of the cash |
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| 25 | 25 | | advance that is more than the amount computed for Subdivision (2) |
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| 26 | 26 | | but less than or equal to an amount computed under Subchapter C, |
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| 27 | 27 | | Chapter 341, using the reference base amount of $2,500. |
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| 28 | 28 | | SECTION 2. The change in law made by this Act applies only |
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| 29 | 29 | | to a loan made on or after the effective date of this Act. A loan |
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| 30 | 30 | | made before the effective date of this Act is governed by the law in |
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| 31 | 31 | | effect on the date the loan was made, and the former law is |
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| 32 | 32 | | continued in effect for that purpose. For purposes of this section, |
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| 33 | 33 | | a refinance or renewal of a loan is considered made on the date the |
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| 34 | 34 | | loan being refinanced or renewed was made. |
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| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2025. |
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