H.B. No. 1547

relating to the form of the loan contract and related documents for a consumer loan. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Section 341.502, Finance Code, is amended to read as follows: Sec. 341.502. FORM OF LOAN CONTRACT AND RELATED DOCUMENTS. SECTION 2. Section 341.502, Finance Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows: (a) A contract for a loan under Chapter 342, a retail installment transaction under Chapter 348, or a home equity loan regulated by the Office of Consumer Credit Commissioner[, whether in English or Spanish,] must be: (1) written in plain language designed to be easily understood by the average consumer; and (2) [. The contract must be] printed in an easily readable font and type size. (a-1) If the terms of the agreement for a loan under Subsection (a) were negotiated in Spanish, a copy of a summary of those terms and other pertinent information shall be provided to the debtor in Spanish in a form identical to disclosures required for a closed-end transaction under 12 C.F.R. Section 226.18. SECTION 3. This Act takes effect September 1, 2005. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1547 was passed by the House on May 10, 2005, by a non-record vote. ______________________________ Chief Clerk of the House I certify that H.B. No. 1547 was passed by the Senate on May 25, 2005, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor