H.B. No. 1979
  relating to interest on commercial loans.
         SECTION 1.  Section 306.002, Finance Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The provisions of this chapter providing authorizations
  with respect to certain transactions do not affect or negatively
  impact any rules of law applicable either to other transactions
  subject to this chapter or to any transactions not subject to this
         SECTION 2.  Section 306.003, Finance Code, is amended to
  read as follows:
         Sec. 306.003.  COMPUTATION OF LOAN TERMS [TERM]. (a) In
  addition to any other method otherwise permitted under this title,
  a creditor and an obligor may agree to compute an annual interest
  rate on a commercial loan on a 365/360 basis or a 366/360 basis, as
  applicable, determined by applying the ratio of the percentage
  annual interest rate agreed to by the parties over a year of 360
  days, multiplied by the outstanding principal balance, multiplied
  by the actual number of days the principal balance is outstanding.
  A creditor and an obligor may also agree to compute the term and
  rate of a commercial loan based on a 360-day year consisting of 12
  30-day months. Each interest [For purposes of this chapter, each]
  rate ceiling under Chapters 302 and 303 expressed as a rate per year
  may mean a rate per year computed in accordance with this section
  [consisting of 360 days and of 12 30-day months].
         (b)  A creditor and an obligor may agree that one or more
  payments of interest due or that are scheduled to be due with
  respect to a commercial loan may be paid on a periodic basis when
  due wholly or partly by adding to the principal balance of the loan
  the amount of unpaid interest due or scheduled to be due, regardless
  of whether the interest added to the principal balance is evidenced
  by an existing or a separate promissory note or other agreement.  On
  and after the date an amount of interest is added to the principal
  balance under this subsection, that amount no longer constitutes
  interest, but instead constitutes part of the principal for
  purposes of calculating the maximum lawful rate or amount of
  interest on the loan.
         SECTION 3.  The changes in law made by this Act apply only to
  a loan agreement entered into on or after the effective date of this
  Act. A loan agreement entered into before the effective date of
  this Act is governed by the law in effect on the date the agreement
  was entered into, and the former law is continued in effect for that
         SECTION 4.  This Act takes effect September 1, 2013.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 1979 was passed by the House on April
  18, 2013, by the following vote:  Yeas 141, Nays 2, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 1979 was passed by the Senate on May
  20, 2013, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________