85R12499 EES-F     By: Flynn H.B. No. 3673       A BILL TO BE ENTITLED   AN ACT   relating to deferred payments under motor vehicle retail   installment contracts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 348.114, Finance Code, is amended by   amending Subsection (a) and adding Subsection (c) to read as   follows:          (a)  If a retail installment contract that provides for a   time price differential that is computed using the add-on method or   the scheduled installment earnings method is amended to defer all   or a part of one or more installments for not longer than three   months, the holder may collect from the retail buyer:                (1)  a deferment charge in an amount computed on the   amount deferred for the period of deferment at a rate that does not   exceed the effective return for time price differential permitted   for a monthly payment retail installment contract; and                (2)  the amount of the additional cost to the holder   for:                      (A)  premiums for continuing in force any   insurance coverages provided for by the contract; and                      (B)  any additional necessary official fees.          (c)  A holder of a retail installment contract that provides   for a time price differential that is computed using the true daily   earnings method may defer all or a part of one or more installments   and continue to accrue time price differential on the unpaid   balance of the contract at the rate agreed to in the contract. A   holder does not collect a deferment charge by the accrual of time   price differential on the unpaid balance of the contract.          SECTION 2.  This Act takes effect September 1, 2017.