Texas Finance Code

§ 342.204 — ADDITIONAL INTEREST FOR INSTALLMENT DEFERMENT: REGULAR TRANSACTION

FI § 342.204Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 342. CONSUMER LOANS · Art. E. INTEREST CHARGES ON NON-REAL PROPERTY LOANS

Statute text

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(a)On a loan contract that includes precomputed interest or uses the scheduled installment earnings method and that is a regular transaction, an authorized lender may charge additional interest for the deferment of an installment if:

(1)the entire amount of the installment is unpaid;

(2)no interest for default has been collected on the installment; and

(3)payment of the installment is deferred for one or more full months and the maturity of the contract is extended for a corresponding period.

(b)The interest for deferment under Subsection (a) may not exceed the amount computed by:

(1)taking the difference between the refund that would be required for prepayment in full as of the date of deferment and the refund that would be required for prepayment in full one month before the date of deferment; and

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Legislative history

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 909, Sec. 2.11, eff. Sept. 1, 1999.