Bill Text: TX SB1334 | 2013-2014 | 83rd Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to accounting and payoff statements for certain seller-financed residential loans.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2013-05-15 - Committee report sent to Calendars [SB1334 Detail]

Download: Texas-2013-SB1334-Comm_Sub.html

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By: Lucio S.B. No. 1334
(In the Senate - Filed March 7, 2013; March 13, 2013, read
first time and referred to Committee on Business and Commerce;
May 1, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 0; May 1, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1334 By: Lucio

A BILL TO BE ENTITLED
AN ACT
relating to accounting and payoff statements for certain
seller-financed residential loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 343, Finance Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS
Sec. 343.301. APPLICATION. This subchapter applies only to
a seller-financed loan that:
(1) is not a federally related mortgage loan, as
defined by 12 U.S.C. Section 2602; and
(2) is secured by a purchase money lien on residential
real property that was not the seller's principal residence at the
time of sale.
Sec. 343.302. ANNUAL ACCOUNTING STATEMENT REQUIRED.
(a) The lender shall provide to the borrower an accounting
statement in January of each year for the term of the loan. If the
lender mails the statement to the borrower, the statement must be
postmarked not later than January 31.
(b) The accounting statement must include the following
information:
(1) the amount paid toward the outstanding balance of
the loan during the preceding calendar year, including separate
amounts showing the total amount applied to interest and the total
amount applied to principal;
(2) the remaining principal balance owed on the loan;
(3) the number of payments remaining on the loan;
(4) the amounts paid to taxing authorities on the
borrower's behalf if collected by the lender; and
(5) the amounts paid to insure the property on the
borrower's behalf if collected by the lender.
Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding
related to a loan to which this subchapter applies, a loan payment
is considered to have been paid on the due date by the borrower if
the payment came due during a calendar year for which the lender did
not provide a required accounting statement to the borrower under
Section 343.302.
Sec. 343.304. OTHER PENALTIES AND LIABILITIES NOT
APPLICABLE. Chapter 349 does not apply to a violation of this
subchapter.
SECTION 2. Section 343.106, Finance Code, is amended by
adding Subsection (h) to read as follows:
(h) For purposes of providing a payoff statement required
under this section for a seller-financed loan to which Subchapter D
applies, a loan payment made to the lender is considered to have
been paid on the due date by the borrower if the payment came due
during a calendar year for which the lender did not provide a
required accounting statement to the borrower under Section
343.302.
SECTION 3. A lender is not required to provide an accounting
statement required by Section 343.302, Finance Code, as added by
this Act, before January 1, 2014.
SECTION 4. This Act takes effect September 1, 2013.
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