Texas Finance Code

§ 64.063 — PAYMENT OF ESTIMATED CHARGES BY BORROWER

FI § 64.063Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part B. SAVINGS AND LOAN ASSOCIATIONS · Ch. 64. LOANS AND INVESTMENTS · Art. D. CHARGES RELATING TO REAL PROPERTY LOANS

Statute text

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(a)To enable the association to pay charges as they become due, an association may require a borrower to pay monthly in advance, in addition to interest or interest and principal, an amount equal to one-twelfth of the estimated annual taxes, assessments, insurance premiums, and other charges on the real property securing a loan.

(b)An association may increase or decrease the amount of the loan payment as necessary to meet the charges.

(c)An association may:

(1)carry payments in trust in an account; or

(2)credit the payments to the indebtedness and advance the money for charges as the charges become due.

Legislative history

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