Texas Finance Code
§ 306.101 — QUALIFIED COMMERCIAL LOAN
FI § 306.101Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 306. COMMERCIAL TRANSACTIONS · Art. B. PROVISIONS RELATING TO SPECIFIC TYPES OF COMMERCIAL LOANS OR TRANSACTIONS
Statute text
View on source(a)The parties to a qualified commercial loan agreement may contract for a rate or amount of interest that does not exceed the applicable rate ceiling.
(b)The parties to a qualified commercial loan agreement may contract for the following charges:
(1)a discount or commission that an obligor has paid or agreed to pay to one or more underwriters of securities issued by the obligor;
(2)an option or right to exchange, redeem, or convert all or a portion of the principal amount of the loan, or interest on the principal amount, for or into capital stock or other equity securities of an obligor or of an affiliate of an obligor;
(3)an option or right to purchase capital stock or other equity securities of an obligor or of an affiliate of an obligor;
(4)an option or other right created by contract, conveyance, or otherwise, to participate in or own a share of the income, revenues, production, or profits:
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Legislative history
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.