Texas Finance Code

§ 347.102 — REQUIREMENTS FOR RATE ADJUSTMENTS

FI § 347.102Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 347. MANUFACTURED HOME CREDIT TRANSACTIONS · Art. C. FINANCE CHARGE RATES AND ADJUSTMENTS

Statute text

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(a)The interest rate or time price differential in a credit transaction may be adjusted at stated regular intervals if the credit document expressly:

(1)provides for the adjustment; and

(2)states the index described by Subsection (b) that is being used for the adjustment.

(b)The index must be:

(1)the monthly average gross yield to the Federal National Mortgage Association on accepted bids in weekly or biweekly auctions for four-month commitments to purchase FHA-insured or VA-guaranteed home mortgages, as published in the Federal Reserve Bulletin;

(2)the monthly average yield on United States Treasury securities adjusted to a constant maturity of five years as published in the Federal Reserve Bulletin; or

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Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.