General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature Page: 550
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Ch. 205 58TH LEGISLATURE--REGULAR SESSION
REGULATORY LOAN ACT
CHAPTER 205 4
S. B. No. 15
An Act to classify loans and lenders and provide for their regulation; stating leg-
islative intent; providing a short title; defining terms; creating the office
of Regulatory Loan Commissioner and providing for his appointment, qual-
ifications, compensation and staff, and prescribing his powers and duties;
prohibiting any person from engaging in the business of making loans with
cash advances of One Thousand Five Hundred Dollars ($1,500) or less under
certain conditions without first obtaining a license, and providing a penalty
and loss of all principal and interest for violation thereof; providing for ex-
emptions; prescribing fees and procedures for issuance of licenses, and
grounds for denial thereof; prescribing minimum assets of licensees; re-
quiring a license for each place of business and providing for changes of
location; limiting licenses to resident citizens of the state and to corpora-
tions the majority of whose stock is owned by resident citizens, with certain
exceptions; providing grounds and procedures for revocation and suspen-
sion of licenses and for surrender of licenses and for reinstatement; pro-
viding for examination of licensees' and others' records; granting the power
of subpoena and other process on investigations and hearings by the com-
missioner and providing for cease and desist orders and injunctions; requir-
ing licensees to keep books and records, available to the commissioner, and
requiring annual reports; authorizing the commissioner to make regulations
and prescribing the procedure therefor; prohibiting false or deceptive ad-
vertising; allowing other businesses to be conducted in the same office
except under certain conditions; prohibiting the conduct of loan business
under any name or at any place other than stated in the license; prescrib-
ing maximum rates of interest and other charges, according to the size of
the loan, on loans of One Thousand Five Hundred Dollars ($1,500) or less,
and regulating loan practices and providing penalties for the making of un-
authorized charges as well as loss of all principal, interest or other recom-
pense; permitting Insurance to be required by the licensee in connection
with loans; defining the types and amounts of insurance and otherwise regu-
lating the use of insurance in connection with loans; prescribing the duties
of the licensee to the borrower; prohibiting liens upon real estate as security
for loans made under this Act, with certain exceptions; prohibiting the
confession of Judgments; requiring certain disclosures to borrowers and pro-
hibiting incomplete instruments; limiting the period of loans made under
this Act; prohibiting the assignment of wages as security for loans made
under this Act; prescribing rights and procedures in hearings before the
commissioner and procedures for appeal of his orders, rulings and decisions;
providing that pre-existing contracts shall not be impaired or affected;
amending Chapter 144, Acts of the 48th Legislature, Regular Session, 1943,
(compiled as Article 4646b, Vernon's Annotated Civil Statutes of Texas),
and Articles 5069, 5071 and 5073 of the Revised Civil Statutes of Texas, 1925;
providing that Chapter 144, Acts of the 48th Legislature, Regular Session,
1943, (compiled as Article 4646b, Vernon's Annotated Civil Statutes of
Texas), Articles 5069, 5071 and 5073 of the Revised Civil Statutes of Texas,
1925, and Chapter 165, Acts of the 42nd Legislature, Regular Session, 1931,
as amended, (compiled as Article 1524a, Vernon's Annotated Civil Statutes of
Texas), where inconsistent with this Act shall not apply to licensees under
this Act; repealing Chapter 472, Acts of the 52nd Legislature, Regular Ses-
sion, 1951, (compiled as Article 1524a-1, Vernon's Annotated Civil Statutes
of Texas), Chapter 17, Acts of the 40th Legislature, First Called Session,
1927, as amended, (compiled as Article 6165a, Vernon's Annotated Civil Stat.
utes of Texas and Article 1129a, Vernon's Annotated Penal Code of Texas),
and Subsections (5) and (6) of Article 19.01, Chapter 19, Title 122A, Taxation-
General, Revised Civil Statutes of Texas, 1925, and all other laws or parts of
laws in conflict herewith to the extent of such conflict; carrying into effect
the amendment to Article XVI, Section 11 of the Constitution, adopted No.
vember 8, 1960; providing for severability; and declaring an emergency.
43. Vernon's Ann.Civ.St. art. 6165b.550
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Texas. Legislature. General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature, legislative document, 1963; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221759/m1/886/?q=+date%3A1945-1972: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.