Texas Finance Code

§ 303.103 — OPEN-END ACCOUNT: CHANGE OF AGREEMENT TERM

FI § 303.103Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 303. OPTIONAL RATE CEILINGS · Art. B. OPEN-END ACCOUNTS

Statute text

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(a)An agreement covering an open-end account may provide that the creditor may change the terms of the agreement for current and future balances of that account by giving notice of the change to the obligor.

(b)A notice under this section to change a provision of an account, including the rate, or the index or formula used to compute the rate, must include:

(1)the new provision, the new rate, or the index or formula to be used to compute the rate;

(2)the date on which the change is to take effect;

(3)the period for which the change is to be effective or after which the rate will be adjusted;

(4)a statement of whether the change is to affect current and future balances; and

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Legislative history

Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.