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: 562
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58TH LEGISLATURE-REGULAR SESSION
stallment being deferred, and during which no payment is made or required
by reason of such deferment. The interest or default or deferment may be
collected at the time of default or deferment, or at any time thereafter.
(6) When any loan contract is prepaid in full by cash, a new loan,
renewal, or otherwise, after the first installment due date but before the
final installment due date, the licensee shall refund or credit the borrower
with an amount which shall be as great a proportion of the total interest
contracted for under Section 17(a) (1) as the sum of the periodic balances
scheduled to follow the installment date after the date of prepayment in
full bears to the sum of all the periodic time balances under the schedule
of payments set out in the loan contract. If such prepayment in full oc-
curs before the first installment due date the licensee shall retain for each
elapsed day from date the loan was made, one-thirtieth (1/30) of the por-
tion of the interest which could be retained if the first installment period
were one (1) month and the loan were prepaid in full on the first install-
ment period due date and the interest contracted for under Section 17(a)
(1) in excess of such amount shall be refunded or credited to the borrower.
No refund shall be required for partial prepayments and no refund of less
than One Dollar ($1) need be made.
(7) No licensee shall induce or permit any person, or husband and
wife, to be obligated, directly or indirectly, under more than one (1) loan
contract under this Act at the same time for the purpose, or with the effect,
of obtaining a higher authorized charge than would otherwise be per-
mitted by this Act; but such limitation shall not apply to the acquisition by
purchase of bona fide obligations of the borrower incurred for goods or
services, and provided further, if a licensee purchases all or substantially
all the loan contracts of another licensee hereunder and has at the time
of purchase loan contracts with one (1) or more of the borrowers whose
loans are purchases, the purchaser shall be entitled to collect principal
and authorized charges thereon according to the terms of each loan con-
tract.
(8) In addition to the authorized charges provided in this Act no fur-
ther or other charge or amount whatsoever shall be directly, or indirectly,
charged, contracted for, or received. This includes (but is not limited by)
all charges such as fees, compensation, bonuses, commissions, brokerage,
discounts, expenses and every other charge of any nature whatsoever,
whether of the types listed herein or not. Without limitation of the fore-
going, such charges may be any form of costs or compensation whether
contracted for or not, received by the licensee, or any other person, in con-
nection with (1) the investigating, arranging, negotiation, procuring,
guaranteeing, making, servicing, collecting or enforcing of a loan; or (2)
for the forbearance of money, credit, goods or things in action; or (3) for
any other service or services performed or offered. However, the prohibi-
tion set out herein shall not apply to amounts actually incurred by a li-
censee as court costs; attorney fees assessed by a court; lawful fees for
filing, record, or releasing to any public office any instrument securing a
loan; the reasonable cost actually expended for repossessing, storing, or
selling any security; or fees for noting a lien on or transferring a cer-
tificate of title to any motor vehicle offered as security for a loan made
under this Act, or premiums or identifiable charge received in connection
with the sale of insurance authorized under Section 18 of this Act.
(9) If any amount in excess of the authorized charges permitted by this
Act is charged, contracted for, or received, except as the result of an acci-
dental and bona fide error, the contract of loan shall be void as against
public policy, and the licensee shall have no right to collect or receive any
principal authorized charges or recompense whatsoever, and the licensee
562Ch. 205
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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/m1/898/?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.