HBA-BSM H.B. 2154 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2154 By: Averitt Financial Institutions 7/25/2001 Enrolled BACKGROUND AND PURPOSE Under current law, the holder of a delinquent motor vehicle retail installment sales contract may be assessed either a late charge or simple interest charge at the contracted rate on delinquent contracts. During the 76th Legislature, legislation was enacted to facilitate the charging of late fees in addition to interest accrual on many types of loan contracts. However, motor vehicle retail installment sales contracts were not included in the legislation. Prior to the 77th Legislature, the holder of such a contract with an unpaid installment could collect a delinquency charge or simple interest, but not both. House Bill 2154 allows the charging of a late charge on contracts in addition to regular interest accrual. 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 2154 amends the Finance Code to provide that a motor vehicle retail installment contract that provides for the accrual earnings method may provide for a delinquency charge, interest, or both on a delinquent contract. The bill provides that a contract may provide for an unpaid installment to collect interest on the amount of the installment accruing after the maturity of the installment and until the installment is paid in full. EFFECTIVE DATE June 15, 2001.