reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 305 - Penalties and Remedies › Subchapter B. Exception From Liability › Section 305.102. Legal Interest During Interest-Free Period

Sec. 305.102.  LEGAL INTEREST DURING INTEREST-FREE PERIOD.  A person is not liable to an obligor solely because the person charges or receives legal interest before the 30th day after the date on which the debt is due.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 305 - Penalties and Remedies › Subchapter B. Exception From Liability › Section 305.103. Correction of Violation

Sec. 305.103.  CORRECTION OF VIOLATION.  (a)  A creditor is not liable to an obligor for a violation of this subtitle if:
(1)  not later than the 60th day after the date the creditor actually discovered the violation, the creditor corrects the violation as to that obligor by taking any necessary action and making any necessary adjustment, including the payment of interest on a refund, if any, at the applicable rate provided for in the contract of the parties;  and
(2)  the creditor gives written notice to the obligor of the violation before the obligor gives written notice of the violation or files an action alleging the violation.
(b)  For the purposes of Subsection (a), a violation is actually discovered at the time of the discovery of the violation in fact and not at the time when an ordinarily prudent person, through reasonable diligence, could or should have discovered or known of the violation.  Actual discovery of a violation in one transaction may constitute actual discovery of the same violation in other transactions if the violation is of such a nature that it would necessarily be repeated and would be clearly apparent in the other transactions without the necessity of examining all the other transactions.
(c)  For purposes of Subsection (a), written notice is given when the notice is delivered to the person or to the person's authorized agent or attorney of record personally, by telecopier, or by United States mail to the address shown on the most recent documents in the transaction.  Deposit of the notice as registered or certified mail in a postage paid, properly addressed wrapper in a post office or official depository under the care and custody of the United States Postal Service is prima facie evidence of the delivery of the notice to the person to whom the notice is addressed.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 305 - Penalties and Remedies › Subchapter B. Exception From Liability › Section 305.104. Correction Exception Available to All Similarly Situated

Sec. 305.104.  CORRECTION EXCEPTION AVAILABLE TO ALL SIMILARLY SITUATED.  If in a single transaction more than one creditor may be liable for a violation of this subtitle, compliance with Section 305.103 by any of those creditors entitles each to the same protection provided by that section.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 305 - Penalties and Remedies › Subchapter B. Exception From Liability › Section 305.105. Amounts Payable Pursuant to a Final Judgment

Sec. 305.105.  AMOUNTS PAYABLE PURSUANT TO A FINAL JUDGMENT.  A creditor is not liable to an obligor for a violation of this subtitle if the creditor receives interest that has been awarded pursuant to a final judgment that is no longer subject to modification or reversal.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.002. Interest; Application of Other Provisions of Subtitle

Sec. 306.002.  INTEREST;  APPLICATION OF OTHER PROVISIONS OF SUBTITLE.  (a)  A creditor may contract for, charge, and receive from an obligor on a commercial loan a rate or amount of interest that does not exceed the applicable ceilings computed in accordance with Chapter 303.
(b)  All other applicable provisions, remedies, and penalties of this subtitle apply to a commercial loan unless this chapter expressly provides otherwise.
(c)  The provisions of this chapter providing authorizations with respect to certain transactions do not affect or negatively impact any rules of law applicable either to other transactions subject to this chapter or to any transactions not subject to this chapter.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 973 (H.B. 1979), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.003. Computation of Loan Terms

Sec. 306.003.  COMPUTATION OF LOAN TERMS.  (a)  In addition to any other method otherwise permitted under this title, a creditor and an obligor may agree to compute an annual interest rate on a commercial loan on a 365/360 basis or a 366/360 basis, as applicable, determined by applying the ratio of the percentage annual interest rate agreed to by the parties over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.  A creditor and an obligor may also agree to compute the term and rate of a commercial loan based on a 360-day year consisting of 12 30-day months.  Each interest rate ceiling under Chapters 302 and 303 expressed as a rate per year may mean a rate per year computed in accordance with this section.
(b)  A creditor and an obligor may agree that one or more payments of interest due or that are scheduled to be due with respect to a commercial loan may be paid on a periodic basis when due wholly or partly by adding to the principal balance of the loan the amount of unpaid interest due or scheduled to be due, regardless of whether the interest added to the principal balance is evidenced by an existing or a separate promissory note or other agreement.  On and after the date an amount of interest is added to the principal balance under this subsection, that amount no longer constitutes interest, but instead constitutes part of the principal for purposes of calculating the maximum lawful rate or amount of interest on the loan.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 973 (H.B. 1979), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.004. Determining Rates of Interest by Spreading

Sec. 306.004.  DETERMINING RATES OF INTEREST BY SPREADING.  (a)  To determine whether a commercial loan is usurious, the interest rate is computed by amortizing or spreading, using the actuarial method during the stated term of the loan, all interest at any time contracted for, charged, or received in connection with the loan.
(b)  If a commercial loan is paid in full before the end of the stated term of the loan and the amount of interest received for the period that the loan exists exceeds the amount that produces the maximum rate authorized by law for that period, the lender shall:
(1)  refund the amount of the excess to the borrower;  or
(2)  credit the amount of the excess against amounts owing under the loan.
(c)  A lender who complies with Subsection (b) is not subject to any of the penalties provided by law for contracting for, charging, or receiving interest in excess of the maximum rate authorized.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.005. Prepayment Premiums and Similar Amounts

Sec. 306.005.  PREPAYMENT PREMIUMS AND SIMILAR AMOUNTS.  With respect to a loan subject to this chapter, a creditor and an obligor may agree to a prepayment premium, make-whole premium, or similar fee or charge, whether payable in the event of voluntary prepayment, involuntary prepayment, acceleration of maturity, or other cause that involves premature termination of the loan, and those amounts do not constitute interest.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.12, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.006. Certain Authorized Charges on Commercial Loans

Sec. 306.006.  CERTAIN AUTHORIZED CHARGES ON COMMERCIAL LOANS.  In addition to the interest authorized by this chapter, the parties to a commercial loan may agree and stipulate for:
(1)  a delinquency charge on the amount of any installment or other amount in default for a period of not less than 10 days in an amount not to exceed five percent of the total amount of the installment; and
(2)  a returned check fee in an amount that does not exceed the maximum fee authorized in Section 3.506, Business & Commerce Code, on any check, draft, order, or other instrument or form of remittance that is returned unpaid or dishonored for any reason.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.13, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter A. General Provisions › Section 306.007. Guaranty, Assumption, Payment, or Other Agreement

Sec. 306.007.  GUARANTY, ASSUMPTION, PAYMENT, OR OTHER AGREEMENT.  With respect to a commercial loan, an obligor may be required to assume, pay, or provide a guaranty of another person's existing or future obligation as a condition of the obligor's own use, forbearance, or detention of money.  The amount of the other person's obligation required to be assumed, paid, or guaranteed does not constitute interest with respect to any obligation of the obligor.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.14, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter B. Provisions Relating to Specific Types of Commercial Loans or Transactions › Section 306.101. Qualified Commercial Loan

Sec. 306.101.  QUALIFIED COMMERCIAL LOAN.  (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:
(A)  of an obligor or of an affiliate of an obligor;
(B)  of any segment of the business or operations of an obligor or of an affiliate of an obligor;  or
(C)  derived or to be derived from ownership rights of an obligor or of an affiliate of an obligor in property, including any proceeds of the sale or other disposition of ownership rights;  or
(5)  compensation realized as a result of the receipt, exercise, sale, or other disposition of an option or other right described by this subsection.
(c)  A charge under Subsection (b) is not interest.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter B. Provisions Relating to Specific Types of Commercial Loans or Transactions › Section 306.102. Asset-Backed Securities Transaction

Sec. 306.102.  ASSET-BACKED SECURITIES TRANSACTION.  An amount that is paid, passed through, or obligated to be paid or to be passed through in connection with asset-backed securities or that is not paid as a result of a discounted sale price to the holders of asset-backed securities by a pass-through entity is not interest.  This section does not affect interest that is agreed on and fixed by the parties to a written contract and paid, charged, or received on the ultimate underlying assets pledged to or held for the benefit of holders of asset-backed securities.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 306 - Commercial Transactions › Subchapter B. Provisions Relating to Specific Types of Commercial Loans or Transactions › Section 306.103. Account Purchase Transaction

Sec. 306.103.  ACCOUNT PURCHASE TRANSACTION.  (a)  An amount of a discount in, or charged under, an account purchase transaction is not interest.
(b)  For the purposes of this chapter, the parties' characterization of an account purchase transaction as a purchase is conclusive that the account purchase transaction is not a transaction for the use, forbearance, or detention of money.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter A. General Provisions › Section 307.001. Definitions

Sec. 307.001.  DEFINITIONS.  In this chapter:
(1)  "Collateral" means property pledged or used to secure payment, repayment, or performance under a credit or lease agreement, including personal property, real property, fixtures, inventory, receivables, rights, or privileges.
(2)  "Collateral protection insurance" means insurance coverage described by Section 307.051.
(3)  "Credit agreement" means a written document that sets forth the terms of a credit transaction.
(4)  "Credit transaction" means a transaction with terms that require the payment of money, goods, services, property, rights, or privileges on a future date and in which the obligation for payment is secured by collateral.
(5)  "Creditor" means a person who is a lender of money or a vendor or lessor of goods, services, property, rights, or privileges for which a payment is arranged through a credit transaction and includes any successor to the rights, title, interest, or liens of the lender, vendor, or lessor.
(6)  "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit agreement.  The term does not include a person who is not a primary obligor under a credit transaction or who is not jointly and severally liable with the debtor for the obligation.
(7)  "Title insurance" means insurance that may be issued only by persons regulated under Title 11, Insurance Code, and that insures:
(A)  a lender or owner against loss caused by:
(i)  defective title held by the mortgagor or owner or insured;
(ii)  unknown mortgages or defective recording of mortgages or liens on real property;
(iii)  failure of any person to pay ad valorem taxes resulting in a lien; or
(iv)  failure to research properly title, taxes, liens, or other matters relative to the validity of loans or liens secured by real property or insurance; or
(B)  the validity, enforceability, or priority of any lien or title on real property.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.115, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.053. Amortization of Debt

Sec. 307.053.  AMORTIZATION OF DEBT.  If any form of amortization is used by the creditor, the creditor shall send to each debtor notice of the terms of the amortization and any change in the debtor's periodic payment.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.054. Cancellation of Collateral Protection Insurance

Sec. 307.054.  CANCELLATION OF COLLATERAL PROTECTION INSURANCE.  A debtor may at any time cause the cancellation of collateral protection insurance by providing proper evidence to the creditor that the debtor has obtained insurance as required by the credit agreement.  If a debtor provides the creditor with proper evidence that the debtor had insurance on the collateral as required by the credit agreement on or before the date the collateral protection insurance is effective and that the debtor continues to have insurance on the collateral as required by the credit agreement, the creditor shall cancel the insurance that it purchased and may not charge the debtor any costs, interest, or other charges in connection with the insurance.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.055. Refund of Unearned Premiums

Sec. 307.055.  REFUND OF UNEARNED PREMIUMS.  (a)  On the date the collateral protection insurance is canceled or expires, the amount of unearned premiums, as computed by the Texas Automobile Rules and Rating Manual for collateral to which that manual applies and pro rata for all other types of collateral, shall be refunded to the creditor.  Except as otherwise provided in Subsection (b), not later than the 14th day after the date the creditor receives the refund, the creditor shall distribute a refund of unearned premiums by any method selected by the creditor, including:
(1)  payment to the debtor by check;  or
(2)  an adjustment to a credit transaction of the debtor.
(b)  If not later than the 28th day after the date the creditor receives the refund the creditor distributes the refund of the unearned premiums by an adjustment to a credit transaction of the debtor that is made effective not later than the 14th day after the date the creditor receives the refund, the creditor shall be in compliance with this section.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.056. Choice of Carrier

Sec. 307.056.  CHOICE OF CARRIER.  Collateral protection insurance may be placed with an insurer that is authorized to write insurance in this state or an eligible surplus lines insurer selected by the creditor.  The insurance shall be evidenced by an individual policy or a certificate of insurance.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.057. Creditor Liability

Sec. 307.057.  CREDITOR LIABILITY.  (a)  A creditor, its insurer, or the insurer's agent that places collateral protection insurance in substantial compliance with the terms of this chapter is not directly or indirectly liable to a debtor, cosigner, or guarantor or any other person in connection with the placement of the collateral protection insurance.
(b)  This chapter does not impose a fiduciary relationship between the creditor and debtor.  Placement of collateral protection insurance is for the principal purpose of protecting the interest of the creditor if the debtor fails to insure collateral as required by the credit agreement.
(c)  A creditor is not required under this chapter to purchase collateral protection insurance or to otherwise insure collateral.  A creditor is not liable to a debtor or any other person for failing to purchase collateral protection insurance, failing to purchase a certain amount or level of coverage of collateral protection insurance, or purchasing collateral protection insurance that protects only the interests of the creditor or less than all the interest of a debtor.  This chapter does not create a cause of action for damages on behalf of a debtor or any other person in connection with the placement of collateral protection insurance.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 307 - Collateral Protection Insurance › Subchapter B. Requirements for Collateral Protection Insurance › Section 307.058. Rights of Creditor and Debtor

Sec. 307.058.  RIGHTS OF CREDITOR AND DEBTOR.  (a)  The obligations and rights of the creditor and debtor with respect to the collateral under Chapters 1 through 9, Business & Commerce Code, are not affected by this chapter.
(b)  This chapter does not impair other remedies, rights, or options available to a creditor under any law, rule, regulation, ruling, court order, or agreement.
(c)  This chapter does not impair or alter other requirements of this code or other law that may apply to a credit transaction.
Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 308 - Consumer Credit Protections › Section 308.001. Applicability

Sec. 308.001.  APPLICABILITY.  This chapter applies to a person regularly engaged in the business of extending credit under this subtitle primarily for personal, family, or household use and not for a business, commercial, investment, or agricultural purpose.  This chapter does not apply to a transaction primarily for a business, commercial, investment, or agricultural purpose.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 1.01, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 308 - Consumer Credit Protections › Section 308.002. False, Misleading, or Deceptive Advertising

Sec. 308.002.  FALSE, MISLEADING, OR DECEPTIVE ADVERTISING.  (a)  A creditor may not, in any manner, advertise or cause to be advertised a false, misleading, or deceptive statement or representation relating to a rate, term, or condition of a credit transaction or advertise credit terms that the person does not intend to offer to consumers who qualify for those terms.
(b)  This section does not create a private right of action.
(c)  In interpreting this section, an administrative agency or a court shall be guided by the applicable advertising provisions of:
(1)  Part C of the Truth in Lending Act (15 U.S.C. Section 1661 et seq.);
(2)  Regulation Z (12 C.F.R. Parts 226 and 1026) adopted by the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; and
(3)  the Official Staff Commentary and other interpretations of that statute and regulation by the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, and the staff of those agencies.
(d)  If a requirement of this section and a requirement of a federal law, including a regulation or an interpretation of federal law, are inconsistent or in conflict, federal law controls and the inconsistent or conflicting requirements of this chapter do not apply.
(e)  A creditor who complies with the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and Regulation Z (12 C.F.R. Parts 226 and 1026) in advertising a credit transaction is considered to have fully complied with this section.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 1.01, eff. September 1, 2005.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 7, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 308 - Consumer Credit Protections › Section 308.003. No Double Liability or Enforcement for Same Act or Practice

Sec. 308.003.  NO DOUBLE LIABILITY OR ENFORCEMENT FOR SAME ACT OR PRACTICE.  A judgment, consent decree, assurance of compliance, or other resolution of a claimed violation asserted by a federal agency under the Consumer Credit Protection Act (15 U.S.C. Section 1601 et seq.) bars a subsequent action or other enforcement under this chapter with respect to the same act or practice.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 1.01, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 339 - Miscellaneous Provisions Relating to Interest › Section 339.002. Billing Cycle Interest Limitation on Open-End Account Without Merchant Discount

Sec. 339.002.  BILLING CYCLE INTEREST LIMITATION ON OPEN-END ACCOUNT WITHOUT MERCHANT DISCOUNT.  (a)  This section applies to an open-end account agreement that provides for credit card transactions:
(1)  in which the creditor relies on one of the ceilings authorized by Chapter 303 for the rate of interest;  and
(2)  in connection with which the creditor does not impose or receive a merchant discount.
(b)  Interest or time price differential may not be charged for a billing cycle of an open-end account credit agreement if:
(1)  the total amount of the obligor's payments during the cycle equal or exceed the balance owed under the agreement at the end of the preceding billing cycle;  or
(2)  an amount is not owed under the agreement at the end of the preceding billing cycle.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 339 - Miscellaneous Provisions Relating to Interest › Section 339.003. Sale of Open-End Account Without Merchant Discount

Sec. 339.003.  SALE OF OPEN-END ACCOUNT WITHOUT MERCHANT DISCOUNT.  A seller or lessor may sell an open-end account credit agreement described by Section 339.002(a) or any balance under that agreement to a purchaser who purchases a substantial part of the seller's or lessor's open-end account credit agreements or balances under those agreements in accordance with Subchapter G, Chapter 345.  A charge, fee, or discount on that sale:
(1)  is not a merchant discount;
(2)  does not disqualify the open-end account credit agreement or a balance under that agreement from being subject to Chapter 303 or from coverage under this section;  and
(3)  does not subject the account to the limitations provided by Section 303.006(c).
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 339 - Miscellaneous Provisions Relating to Interest › Section 339.004. Application of Licensing Requirement and Subtitle B to Credit Union or Employee Benefit Plan

Sec. 339.004.  APPLICATION OF LICENSING REQUIREMENT AND SUBTITLE B TO CREDIT UNION OR EMPLOYEE BENEFIT PLAN.  (a)  A credit union is not subject to Subtitle B  and is not required to obtain a license under this title.
(b)  With respect to a loan that an employee benefit plan that is subject to Title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. Sections 1001-1114) makes to a participant in the plan or a participant's beneficiary, the plan is not subject to Subtitle B and is not required to obtain a license under this title.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle A - Interest › Chapter 339 - Miscellaneous Provisions Relating to Interest › Section 339.005. Applicability of Certain Federal Law

Sec. 339.005.  APPLICABILITY OF CERTAIN FEDERAL LAW.  This title does not override or restrict the applicability of 12 U.S.C. Section 1735f-7a.
Added by Acts 2001, 77th Leg., ch. 916, Sec. 9, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter A. Definitions and Time Computation › Section 341.002. Computation of Month

Sec. 341.002.  COMPUTATION OF MONTH.  (a)  For the computation of time in this subtitle, a month is the period from a date in a month to the corresponding date in the succeeding month.  If the succeeding month does not have a corresponding date, the period ends on the last day of the succeeding month.
(b)  For the computation of a fraction of a month, a day is equal to one-thirtieth of a month.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter B. Regulating Official › Section 341.101. Consumer Credit Commissioner

Sec. 341.101.  CONSUMER CREDIT COMMISSIONER.  The consumer credit commissioner has the powers and shall perform all duties relating to the issuance of a license under this subtitle and is responsible for the other administration of this subtitle except as provided by this subchapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter B. Regulating Official › Section 341.102. Regulation of Banks

Sec. 341.102.  REGULATION OF BANKS.  (a)  The banking commissioner shall enforce this subtitle relating to the regulation of a state bank operating under this subtitle.
(b)  The official exercising authority over the operations of national banks equivalent to the authority exercised by the banking commissioner over state banks may enforce this subtitle relating to the regulation of a national bank operating under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter B. Regulating Official › Section 341.103. Regulation of Savings Institutions, Licensed Mortgage Brokers and Loan Officers, and Registered Mortgage Bankers and Licensed Loan Officers

Sec. 341.103.  REGULATION OF SAVINGS INSTITUTIONS, LICENSED MORTGAGE BROKERS AND LOAN OFFICERS, AND REGISTERED MORTGAGE BANKERS AND LICENSED LOAN OFFICERS.  (a)  The savings and mortgage lending commissioner shall enforce this subtitle relating to the regulation of:
(1)  state savings associations operating under this subtitle;
(2)  state savings banks operating under this subtitle;
(3)  persons licensed under Chapter 156; and
(4)  persons registered or licensed under Chapter 157.
(b)  The official exercising authority over the operation of federal savings associations equivalent to the authority exercised by the savings and mortgage lending commissioner over state savings associations may enforce this subtitle relating to the regulation of a federal savings association operating under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.034, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 905 (H.B. 2783), Sec. 11, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 905 (H.B. 2783), Sec. 12, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.060, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 9, eff. April 1, 2010.
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 10, eff. April 1, 2010.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter B. Regulating Official › Section 341.104. Regulation of Credit Unions

Sec. 341.104.  REGULATION OF CREDIT UNIONS.  (a)  The credit union commissioner shall enforce this subtitle relating to the regulation of state credit unions operating under this subtitle.
(b)  The official exercising authority over federal credit unions equivalent to the authority exercised by the credit union commissioner may enforce this subtitle relating to the regulation of a federal credit union operating under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter C. Revised Ceilings and Brackets › Section 341.201. Definitions of Indexes

Sec. 341.201.  DEFINITIONS OF INDEXES.  In this subchapter:
(1)  "Consumer price index" means the Consumer Price Index for Urban Wage Earners and Clerical Workers:  U.S. City Average, All Items, 1967=100, compiled by the Bureau of Labor Statistics, United States Department of Labor, or, if that index is canceled or superseded, the index chosen by the Bureau of Labor Statistics as most accurately reflecting the changes in the purchasing power of the dollar for consumers.
(2)  "Reference base index" means the consumer price index for December 1967.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter C. Revised Ceilings and Brackets › Section 341.202. Revision of Ceiling or Bracket

Sec. 341.202.  REVISION OF CEILING OR BRACKET.  (a)  Each year the commissioner shall compute, in accordance with Section 341.203, the amount of each:
(1)  ceiling on a cash advance regulated under this subtitle that is required to be revised;  and
(2)  bracket that establishes a range of cash advances or balances to which a maximum charge provided by this subtitle applies and that is required to be revised.
(b)  The revised ceiling or bracket amount takes effect on July 1 of the year of its computation.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter C. Revised Ceilings and Brackets › Section 341.203. Computation of Revised Ceiling or Bracket

Sec. 341.203.  COMPUTATION OF REVISED CEILING OR BRACKET.  (a)  The amount of a revised ceiling or bracket is computed by:
(1)  dividing the reference base index into the consumer price index at the end of the preceding year;
(2)  computing the percentage of change under Subdivision (1) to the nearest whole percent;
(3)  rounding the result computed under Subdivision (2) to the next lower multiple of 10 percent unless the result computed under Subdivision (2) is a multiple of 10 percent in which event that result is used;  and
(4)  multiplying the reference amount of the ceiling or bracket provided by this subtitle by the result under Subdivision (3).
(b)  If the consumer price index is revised, the revised index shall be used to compute amounts under this section after that revision takes effect.  If the revision changes the reference base index, a revised reference base index shall be used.  The revised reference base index shall bear the same ratio to the reference base index as the revised consumer price index for the first month in which it is available bears to the consumer price index for the first month in which the revised consumer price index is available.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter C. Revised Ceilings and Brackets › Section 341.204. Publication of Revised Ceiling, Bracket, or Index Information

Sec. 341.204.  PUBLICATION OF REVISED CEILING, BRACKET, OR INDEX INFORMATION.  (a)  The commissioner shall send the amount of a revised ceiling or bracket computed under Section 341.203 to the secretary of state for publication in the Texas Register before May 1 of the year in which the amount of the bracket or ceiling is to change.
(b)  If the consumer price index is revised or superseded, the commissioner promptly shall send the revised index, the numerical equivalent of the reference base index under a revised reference base index, or the designation of the index that supersedes the consumer price index, as appropriate, to the secretary of state for publication in the Texas Register.
(c)  A court may take judicial notice of information published under this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter D. Advertising Requirements › Section 341.301. Information About Advertisers

Sec. 341.301.  INFORMATION ABOUT ADVERTISERS.  (a)  In each advertisement that purports to offer credit regulated by this subtitle, Subtitle C, or Chapter 394, the advertiser shall disclose the legal or registered name of the advertiser and:
(1)  shall disclose the street address of the advertiser's place of business unless the advertisement:
(A)  is located on the premises of the advertiser's place of business; or
(B)  is broadcast by radio or television; or
(2)  if the advertisement is broadcast by radio or television, shall:
(A)  disclose the telephone number of the advertiser; and
(B)  comply with the applicable disclosure requirements of Regulation Z (12 C.F.R. Parts 226 and 1026).
(b)  This section does not apply to:
(1)  a federally insured depository institution;  or
(2)  a person engaged in interstate commerce who advertises under a generally recognized trade name, abbreviated form of a trade name, or logo.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 8, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.401. Discrimination Prohibited

Sec. 341.401.  DISCRIMINATION PROHIBITED.  (a)  An authorized lender or other person involved in a transaction subject to this title may not deny to an individual who has the capacity to contract an extension of credit, including a loan, in the individual's name or restrict or limit the credit extended:
(1)  because of sex, race, color, religion, national origin, marital status, or age;
(2)  because all or part of the individual's income derives from a public assistance program in the form of social security or supplemental security income;  or
(3)  because the individual has in good faith exercised a right under the Consumer Credit Protection Act (15 U.S.C. Section 1601 et seq.;  18 U.S.C. Section 891 et seq.).
(b)  In interpreting this section, a court or administrative agency shall be guided by the Equal Credit Opportunity Act (15 U.S.C. Section 1691 et seq.) and regulations under and interpretations of that Act by the Federal Reserve Board and the Consumer Financial Protection Bureau to the extent that Act and those regulations and interpretations can be made applicable to conduct prohibited by this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 9, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.402. Penalties for Prohibited Discrimination

Sec. 341.402.  PENALTIES FOR PROHIBITED DISCRIMINATION.  (a)  A person who violates Section 341.401 is liable to the aggrieved individual for:
(1)  the actual damages caused by the violation;
(2)  punitive damages not to exceed $10,000 in an action brought by the aggrieved individual;  and
(3)  court costs.
(b)  The liability of a person under this section is instead of and not in addition to that person's liability under the Equal Credit Opportunity Act (15 U.S.C. Section 1691 et seq.). If the same act or omission violates Section 341.401 and applicable federal law, the person aggrieved by that conduct may bring a legal action to recover monetary damages either under this section or under that federal law, but not both.
(c)  In addition to the other liabilities prescribed by this section, a person holding a license issued under this subtitle who violates Section 341.401 is subject to revocation or suspension of the license or the assessment of civil penalties by the commissioner.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 1.02, eff. September 1, 2005.
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 10, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.403. False, Misleading, or Deceptive Advertising

Sec. 341.403.  FALSE, MISLEADING, OR DECEPTIVE ADVERTISING.  (a)  A person may not, in any manner, advertise or cause to be advertised a false, misleading, or deceptive statement or representation relating to a rate, term, or condition of a credit transaction, including a loan, regulated under this subtitle, Subtitle C, or Chapter 394, or advertise credit terms that the person does not intend to offer to consumers who qualify for those terms.
(b)  If a rate or charge is stated in advertising, the rate or charge shall be stated fully and clearly.
(c)  The finance commission may not adopt rules restricting advertising or competitive bidding by a license holder regulated by the Office of Consumer Credit Commissioner except to prohibit false, misleading, or deceptive practices.
(d)  In its rules to prohibit false, misleading, or deceptive practices, the finance commission may not include a rule that:
(1)  restricts the use of any medium for advertising;
(2)  restricts the use of a license holder's personal appearance or voice in an advertisement;
(3)  relates to the size or duration of an advertisement by the license holder;  or
(4)  restricts the license holder's advertisement under a trade name, unless the trade name is deceptive.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1235, Sec. 10, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 1.03, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.404. Prohibited Acts Relating to a Loan

Sec. 341.404.  PROHIBITED ACTS RELATING TO A LOAN.  A person may not perform an act, including advertising, or offer a service that would cause another to believe that the person is offering to make, arrange, or negotiate a loan that is subject to this subtitle, Subtitle C, or Chapter 394 unless the person is authorized to perform the act or offer the service as:
(1)  a credit service organization under Chapter 393;
(2)  a pawnbroker under Chapter 371;  or
(3)  an authorized lender.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.405. Penalty for Making Illegal Offer

Sec. 341.405.  PENALTY FOR MAKING ILLEGAL OFFER.  (a)  A person commits an offense if the person violates Section 341.404.  An offense under that section is a Class C misdemeanor.
(b)  A person who violates Section 341.404:
(1)  may be prosecuted for the offense;  or
(2)  may be held liable for:
(A)  the penalties under Chapter 349;  and
(B)  civil penalties assessed by the consumer credit commissioner.
(c)  A person is not subject to both prosecution and the penalties described by Subsection (b)(2).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter E. Prohibitions and Violations › Section 341.406. When Act or Omission Not Violation

Sec. 341.406.  WHEN ACT OR OMISSION NOT VIOLATION.  An act or omission does not violate this title if the act or omission conforms to:
(1)  Subchapter C;
(2)  a provision determined by the commissioner;  or
(3)  an interpretation of this title that is in effect at the time of the act or omission and that was made by:
(A)  the commissioner under Section 14.108;  or
(B)  an appellate court of this state or the United States.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 341 - General Provisions › Subchapter F. Licensing and Regulation in General › Section 341.501. Staggered Renewal

Sec. 341.501.  STAGGERED RENEWAL.  The finance commission by rule may adopt a system under which licenses under this subtitle expire on various dates during the year.  For the year in which the license expiration date is changed, the Office of Consumer Credit Commissioner shall prorate license fees on a monthly basis so that each license holder pays only that portion of the license fee that is allocable to the number of months during which the license is valid.  On renewal of the license on the new expiration date, the total license renewal fee is payable.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 11, eff. Sept. 1, 2001.