Texas Finance Code

§ 342.301 — MAXIMUM INTEREST CHARGE

FI § 342.301Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 342. CONSUMER LOANS · Art. G. INTEREST AND OTHER CHARGES ON SECONDARY MORTGAGE LOANS

Statute text

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(a)A secondary mortgage loan that is a regular transaction may provide for an interest charge on the cash advance that is precomputed and that does not exceed a rate or amount that would produce the same effective return as allowed under Subchapter A, Chapter 303.

(b)For the purpose of Subsection (a):

(1)when the loan is made an interest charge may be computed for the full term of the loan contract;

(2)if the period before the first installment due date includes a part of a month that is longer than 15 days, that portion of a month may be considered a full month; and

(3)if a loan contract provides for precomputed interest, the amount of the loan is the total of:

(A)the cash advance; and

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Legislative history

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