HBA-KDB, RKM H.B. 198 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 198
By: Averitt
Financial Institutions
6/12/2001
Enrolled



BACKGROUND AND PURPOSE 

Under current law, the acquisition charge on a small cash consumer loan
(loan) of $100 or less is not refundable.  However, prior to the 77th
Legislature, on loans in excess of $100, the $10 acquisition charge was
subject to refund in the event of early prepayment.  House Bill 198 repeals
the provision that refunds the $10 acquisition charge on loans in excess of
$100. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 198 amends the Finance Code to provide that an acquisition
charge is considered to be earned at the time a loan is made and is no
longer subject to refund on cash advances of more than $100 in a loan
contract.     

EFFECTIVE DATE

September 1, 2001.