88(R) HB 4359 - Introduced version - Bill Text
| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the regulation of accounts receivable purchase |
|
|
transaction actions |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Title 4, Business and Commerce Code, is amended |
|
|
by adding a new Chapter 60 as follows: |
|
|
CHAPTER 60. ACCOUNTS RECEIVABLE PURCHASE TRANSACTIONS |
|
|
Sec. 60.001. DEFINITIONS. For the purposes of this |
|
|
chapter, these terms are defined as follows: |
|
|
(1) "Account receivable purchase transaction" means a |
|
|
transaction in which a business forwards or otherwise sells to a |
|
|
person all or a portion of the business's accounts or payment |
|
|
intangibles, as defined in Texas Business and Commerce Code, |
|
|
Chapter 9, Section 9.102, at a discount to the accounts' or payment |
|
|
intangibles' expected value. |
|
|
(2) "Broker" means any person who, for compensation or |
|
|
the expectation of compensation, obtains an account receivable |
|
|
purchase transaction or an offer for an account receivable purchase |
|
|
transaction from a third party that would, if executed, be binding |
|
|
upon that third party and communicates that offer to a business |
|
|
located in Texas. The term "broker" excludes a "provider," and any |
|
|
person whose compensation is not based on or dependent upon the |
|
|
terms of the specific account receivable purchase transaction |
|
|
obtained or offered. |
|
|
(3) "Provider" means a person who consummates more |
|
|
than five account receivable purchase transactions in Texas during |
|
|
any calendar year, including a person who, under a written |
|
|
agreement with a depository institution, offers one or more account |
|
|
receivable purchase transactions provided by the depository |
|
|
institution via an online platform that the person administers. |
|
|
Sec. 60.02. EXEMPTIONS. The provisions of this subsection |
|
|
do not apply to |
|
|
(a) an account receivable purchase transaction offered or |
|
|
made by a provider: |
|
|
(1) that is a depository institution, a subsidiary of |
|
|
a depository institution, or a service corporation for a depository |
|
|
institution that is regulated by a federal banking agency; |
|
|
(2) that is regulated under the federal Farm Credit |
|
|
Act 12 U.S.C. Sec. 2001 et seq.; and |
|
|
(3) that is licensed as a money transmitter in any |
|
|
state; |
|
|
(b) a person who consummates five or fewer account |
|
|
receivable purchase transactions in Texas during any 12-month |
|
|
period; |
|
|
(c) a person who offers or makes an account receivable |
|
|
purchase transaction in connection with the sale or lease of a |
|
|
product or service that: |
|
|
(1) the person manufactures, licenses, or |
|
|
distributes; |
|
|
(2) the person's parent company or the person's |
|
|
directly or indirectly owned and controlled subsidiary |
|
|
manufactures, licenses, or distributes. |
|
|
(d) an account receivable purchase transaction of more than |
|
|
$500,000. |
|
|
Sec. 60.03. DISCLOSURES. (a) At or before consummating an |
|
|
account receivable purchase transaction, a provider shall disclose |
|
|
the terms of the account receivable purchase transaction in |
|
|
accordance with subsection (c). |
|
|
(b) Only one disclosure must be provided for each account |
|
|
receivable purchase transaction, and a disclosure is not required |
|
|
as a result of a modification or forbearance. |
|
|
(c) A provider shall disclose the following terms of the |
|
|
account receivable purchase transaction: |
|
|
(1) the total amount of funds provided to the |
|
|
business; |
|
|
(2) the total amount of funds disbursed to the |
|
|
business, if less than the amount described in Subsection (c)(1); |
Statutes affected:
Introduced: ()
|