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A BILL TO BE ENTITLED
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AN ACT
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relating to the extension of consumer credit to certain members of |
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the Texas National Guard and armed forces of the United States and |
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their dependents; providing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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adding Chapter 353 to read as follows: |
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CHAPTER 353. EXTENSION OF CONSUMER CREDIT TO SERVICEMEMBERS OR |
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THEIR DEPENDENTS |
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Sec. 353.001. DEFINITIONS. In this chapter: |
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(1) "Creditor" means a person who: |
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(A) is engaged in the business of extending |
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consumer credit; or |
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(B) transacts, negotiates, or services an |
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extension of consumer credit. |
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(2) "Extension of consumer credit" means the right to |
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defer payment of debt offered or granted primarily for personal, |
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family, or household purposes or to incur the debt and defer its |
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payment. |
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(3) "Servicemember" means a member of the United |
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States armed forces or a member of the Texas National Guard called |
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to federal active duty. |
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(4) "Dependent," with respect to a servicemember, |
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means the servicemember's spouse or dependent child. |
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(5) "Dependent child" means a person who is unmarried |
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and who: |
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(A) is under 18 years of age; |
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(B) before the person's 18th birthday, became |
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permanently incapable of self-support; or |
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(C) is under 23 years of age and is pursuing a |
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course of instruction at an approved educational institution. |
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Sec. 353.002. INAPPLICABILITY OF CHAPTER. This chapter |
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does not apply to: |
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(1) an insured depository institution, as that term is |
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defined by Section 3, Federal Deposit Insurance Act (12 U.S.C. |
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Section 1813); or |
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(2) an insured credit union, as that term is defined by |
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Section 101, Federal Credit Union Act (12 U.S.C. Section 1752). |
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Sec. 353.003. FEDERAL REQUIREMENTS APPLICABLE. (a) A |
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creditor who extends consumer credit to a servicemember or a |
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servicemember's dependent must comply with Section 670, Public Law |
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109-364 or any regulation adopted pursuant thereto. |
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(b) A creditor shall apply the protections under Section |
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670, Public Law 109-364 to servicemembers and servicemember's |
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dependents as defined under Section 353.001. |
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(c) A violation of any provision of Section 670, Public Law |
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109-364 or any regulation adopted pursuant thereto shall be deemed |
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a violation of this chapter. |
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Sec. 353.004. CRIMINAL PENALTY. A creditor who knowingly |
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violates this chapter commits an offense. An offense under this |
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section is a Class A misdemeanor. |
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Sec. 353.005. REMEDIES AND ADDITIONAL PENALTIES. (a) The |
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remedies and rights available under this chapter are in addition to |
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and do not preclude any remedy otherwise available under law to a |
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servicemember or a servicemember's dependent, including any award |
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for consequential or punitive damages. |
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(b) On violation of this chapter, a creditor is subject to |
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all remedies and penalties authorized by Chapter 14. |
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SECTION 2. Chapter 353, Finance Code, as added by this Act, |
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applies only to an extension of consumer credit made on or after the |
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effective date of this Act. An extension of consumer credit made |
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before the effective date of this Act is governed by the law in |
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effect on the date the extension of consumer credit was made, and |
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the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |