reglab/statecodes huggingface dataset:
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 341.502. Form of Loan Contract and Related Documents

Sec. 341.502.  FORM OF LOAN CONTRACT AND RELATED DOCUMENTS.  (a)  A contract for a loan under Chapter 342, a retail installment transaction under Chapter 348, or a home equity loan regulated by the Office of Consumer Credit Commissioner must be:
(1)  written in plain language designed to be easily understood by the average consumer; and
(2)  printed in an easily readable font and type size.
(a-1)  If the terms of the agreement for a loan under Subsection (a) were negotiated in Spanish, a copy of a summary of those terms and other pertinent information shall be provided to the debtor in Spanish in a form identical to disclosures required for a closed-end transaction under 12 C.F.R. Section 1026.18.
(b)  The finance commission shall adopt rules governing the form of contracts to which this section applies.  The rules must include model contracts complying with the rules and this section.
(c)  A person governed by this section is not required to use a model contract.  The person, however, may not use a contract other than a model contract unless the person has submitted the contract to the commissioner.  The commissioner shall issue an order disapproving the contract if the commissioner determines that the contract does not comply with this section or rules adopted under this section.
(d)  The person may begin using a contract submitted under Subsection (c) on the date it is submitted for review.  If the commissioner issues an order disapproving the contract, the person may not use the contract after the order takes effect.
(e)  A person may not represent that the commissioner's failure to disapprove a contract constitutes an approval of the contract by the commissioner, the Office of Consumer Credit Commissioner, or the finance commission.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 11, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 1071 (H.B. 1547), Sec. 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 1071 (H.B. 1547), Sec. 2, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 2, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 6, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 11, 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 F. Licensing and Regulation in General › Section 341.503. Work From Remote Locations

Sec. 341.503.  WORK FROM REMOTE LOCATIONS.  (a)  Notwithstanding provisions of this subtitle that prohibit conducting business at an unlicensed location and except as provided by Subsection (b), a person licensed under this subtitle may allow an employee of the license holder to work from a remote location if the license holder:
(1)  ensures that in-person consumer interactions will be conducted at a licensed location;
(2)  maintains appropriate safeguards for license holder and consumer data, information, and records, including the use of secure virtual private networks where appropriate;
(3)  employs appropriate risk-based monitoring and oversight processes for work performed from a remote location and maintains records of those processes;
(4)  ensures that consumer information and records are not maintained at a remote location;
(5)  ensures that license holder and consumer information and records, including written procedures and training for work from remote locations authorized under this section, are accessible and available to the commissioner or the commissioner's representative on request;
(6)  provides appropriate employee training to:
(A)  keep all conversations about and with consumers conducted from a remote location confidential as if conducted from a licensed location; and
(B)  ensure that remote employees work in an environment conducive and appropriate to consumer privacy; and
(7)  adopts, maintains, and follows written procedures to ensure that:
(A)  the license holder and the license holder's employees comply with this section and applicable law; and
(B)  the employees do not perform an activity that would be prohibited at a licensed location.
(b)  This section applies to an employee of a person licensed under Chapter 348 or 353 only if the employee engages in making, servicing, holding, or collecting a retail installment transaction as defined by Section 348.001 or 353.001, as applicable.
(c)  The finance commission may adopt rules to implement this section.
Added by Acts 2021, 87th Leg., R.S., Ch. 492 (H.B. 3510), Sec. 1, eff. September 1, 2021.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.601. Definition

Sec. 341.601.  DEFINITION.  In this subchapter, "fund" means the state-licensed residential mortgage loan originator recovery fund.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.602. State-Licensed Residential Mortgage Loan Originator Recovery Fund

Sec. 341.602.  STATE-LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATOR RECOVERY FUND.  (a)  The commissioner under Chapter 180 shall establish, administer, and maintain a state-licensed residential mortgage loan originator recovery fund as provided by this subchapter.  The amounts received by the commissioner for deposit in the fund shall be held by the commissioner in trust for carrying out the purposes of the fund.
(b)  Subject to this subsection, the fund shall be used to reimburse residential mortgage loan applicants for actual damages incurred because of acts committed by a state-licensed residential mortgage loan originator who was licensed under Chapter 342, 347, 348, or 351 when the act was committed.  The use of the fund is limited to reimbursement for out-of-pocket losses caused by an act that constitutes a violation of Chapter 180 or this subtitle.  Payments from the fund may not be made to a lender who makes a residential mortgage loan originated by the state-licensed residential mortgage loan originator or who acquires a residential mortgage loan originated by the state-licensed residential mortgage loan originator.
(c)  The fund may be used at the discretion of the commissioner to reimburse expenses incurred to secure and destroy residential mortgage loan documents that have been abandoned by a current or former state-licensed residential mortgage loan originator under the regulatory authority of the agency.
(d)  Payments from the fund shall be reduced by the amount of any recovery from the state-licensed residential mortgage loan originator or from any surety, insurer, or other person or entity making restitution to the applicant on behalf of the originator.
(e)  The commissioner, as manager of the fund, is entitled to reimbursement for reasonable and necessary costs and expenses incurred in the management of the fund, including costs and expenses incurred with regard to applications filed under Section 341.605.
(f)  The commissioner shall remit to the comptroller amounts received under Section 341.603(a) for deposit in an interest-bearing deposit account in the Texas Treasury Safekeeping Trust Company.  Amounts in the fund may be invested and reinvested under the prudent person standard described by Section 11b, Article VII, Texas Constitution, and the interest from those investments shall be deposited to the credit of the fund. An investment may not be made under this subsection if the investment will impair the necessary liquidity required to satisfy payment of claims under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 12, 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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.603. Funding

Sec. 341.603.  FUNDING.  (a)  An applicant for an original residential mortgage loan originator license issued under Chapter 342, 347, 348, or 351 or for renewal of a residential mortgage loan originator license issued under Chapter 342, 347, 348, or 351 shall, in addition to paying the original application fee or renewal fee, pay a fee in an amount determined by the commissioner.  The fee shall be deposited in the fund.
(b)  If the balance remaining in the fund at the end of a calendar year is more than $2.5 million, the amount of money in excess of that amount shall be available to the commissioner to offset the expenses of participating in and sharing information with the Nationwide Mortgage Licensing System and Registry in accordance with Chapter 180.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.604. Statute of Limitations

Sec. 341.604.  STATUTE OF LIMITATIONS.  (a)  An application for the recovery of actual damages from the fund under Section 341.605 may not be filed after the second anniversary of the date of the alleged act or omission causing the actual damages or the date the act or omission should reasonably have been discovered.
(b)  This section does not apply to a subrogation claim brought by the commissioner for recovery of money paid out of the fund.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.605. Procedure for Recovery

Sec. 341.605.  PROCEDURE FOR RECOVERY.  (a)  To recover from the fund, a residential mortgage loan applicant must file a written sworn application with the commissioner in the form prescribed by the commissioner.  A person who knowingly makes a false statement in connection with applying for money out of the fund may be subject to criminal prosecution under Section 37.10, Penal Code.
(b)  The residential mortgage loan applicant is required to show:
(1)  that the applicant's claim is based on facts allowing recovery under Section 341.602; and
(2)  that the applicant:
(A)  is not a spouse of the state-licensed residential mortgage loan originator;
(B)  is not a child, parent, grandchild, grandparent, or sibling, including relationships by adoption, of the state-licensed residential mortgage loan originator;
(C)  is not a person sharing living quarters with the state-licensed residential mortgage loan originator or a current or former employer, employee, or associate of the originator;
(D)  is not a person who has aided, abetted, or participated other than as a victim with the state-licensed residential mortgage loan originator in any activity that is illegal under this subtitle or Chapter 180 or is not the personal representative of a state-licensed residential mortgage loan originator; and
(E)  is not licensed as a state-licensed residential mortgage loan originator who is seeking to recover any compensation in the transaction or transactions for which the application for payment is made.
(c)  On receipt of the verified application, the commissioner's staff shall:
(1)  notify each appropriate license holder and the issuer of any surety bond issued in connection with their licenses; and
(2)  investigate the application and issue a preliminary determination, giving the applicant, the license holder, and any surety an opportunity to resolve the matter by agreement or to dispute the preliminary determination.
(d)  If the preliminary determination under Subsection (c)(2) is not otherwise resolved by agreement and is not disputed by written notice to the commissioner before the 31st day after the notification date, the preliminary determination automatically becomes final and the commissioner shall make payment from the fund, subject to the limits of Section 341.606.
(e)  If the preliminary determination under Subsection (c)(2) is disputed by the applicant, license holder, or any surety by written notice to the commissioner before the 31st day after the notification date, the matter shall be set for a hearing governed by Chapter 2001, Government Code, and the hearing rules of the finance commission.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.606. Recovery Limits

Sec. 341.606.  RECOVERY LIMITS.  (a)  A person entitled to receive payment out of the fund is entitled to receive reimbursement of actual, out-of-pocket damages as provided by this section.
(b)  A payment from the fund may be made as provided by Section 341.605 and this section.  A payment for claims:
(1)  arising out of the same transaction, including interest, is limited in the aggregate to $25,000, regardless of the number of claimants; and
(2)  against a single person licensed as a residential mortgage loan originator under Chapter 342, 347, 348, or 351 is limited in the aggregate to $50,000 until the fund has been reimbursed for all amounts paid.
(c)  In the event there are concurrent claims under Subsections (b)(1) and (2) that exceed the amounts available under the fund, the commissioner shall prorate recovery based on the amount of damage suffered by each claimant.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.607. Revocation of License for Payment From Fund

Sec. 341.607.  REVOCATION OF LICENSE FOR PAYMENT FROM FUND.  (a)  The commissioner may revoke a residential mortgage loan originator license issued under this subtitle on proof that the commissioner has made a payment from the fund of any amount toward satisfaction of a claim against a state-licensed residential mortgage loan originator under this subchapter.
(b)  The commissioner may seek to collect from a state-licensed residential mortgage loan originator the amount paid from the fund on behalf of the originator and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the fund, plus interest at the current legal rate until the amount has been repaid in full.  Any amount, including interest, recovered by the commissioner shall be deposited to the credit of the fund.
(c)  The commissioner may probate an order revoking a license under this section.
(d)  A state-licensed residential mortgage loan originator on whose behalf payment was made from the fund is not eligible to receive a new license until the originator has repaid in full, plus interest at the current legal rate, the amount paid from the fund on the originator's behalf and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement from the fund.
(e)  This section does not limit the authority of the commissioner to take disciplinary action against a state-licensed residential mortgage loan originator for a violation of the chapter under which the license was issued or the rules adopted by the finance commission under that chapter.  The repayment in full to the fund of all obligations of a state-licensed residential mortgage loan originator does not nullify or modify the effect of any other disciplinary proceeding.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.608. Subrogation

Sec. 341.608.  SUBROGATION.  When the commissioner has paid an applicant an amount from the fund under Section 341.605, the commissioner is subrogated to all of the rights of the applicant to the extent of the amount paid.  The applicant shall assign the applicant's right, title, and interest in any subsequent judgment against the state-licensed residential mortgage loan originator up to the amount paid by the commissioner.  Any amount, including interest, recovered by the commissioner on the assignment shall be deposited to the credit of the fund.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.609. Failure to Comply With Subchapter or Rule Adopted by Finance Commission

Sec. 341.609.  FAILURE TO COMPLY WITH SUBCHAPTER OR RULE ADOPTED BY FINANCE COMMISSION.  The failure of an applicant under Section 341.605 to comply with a provision of this subchapter or a rule adopted by the finance commission relating to the fund constitutes a waiver of any rights under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
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 G. State-Licensed Residential Mortgage Loan Originator Recovery Fund › Section 341.610. Rulemaking

Sec. 341.610.  RULEMAKING.  The finance commission may adopt rules on the commissioner's recommendation to promote a fair and orderly administration of the fund consistent with the purposes of this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 9, eff. June 19, 2009.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.001. Definitions

Sec. 342.001.  DEFINITIONS.  In this chapter:
(1)  "Irregular transaction" means a loan:
(A)  that is payable in installments that are not consecutive, monthly, and substantially equal in amount;  or
(B)  the first scheduled installment of which is due later than one month and 15 days after the date of the loan.
(2)  "Regular transaction" means a loan:
(A)  that is payable in installments that are consecutive, monthly, and substantially equal in amount;  and
(B)  the first scheduled installment of which is due within one month and 15 days after the date of the loan.
(3)  "Regulated loan license" means a consumer loan license.
(4)  "Secondary mortgage loan" means a loan that is:
(A)  secured in whole or in part by an interest, including a lien or security interest, in real property that is:
(i)  improved by a dwelling designed for occupancy by four or fewer families;  and
(ii)  subject to one or more liens, security interests, prior mortgages, or deeds of trust;  and
(B)  not to be repaid before the 91st day after the date of the loan.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 909, Sec. 2.04, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.002. Interest Computation Methods

Sec. 342.002.  INTEREST COMPUTATION METHODS.  (a)  The scheduled installment earnings method is a method to compute an interest charge by applying a daily rate to the unpaid balance of the principal amount as if each payment will be made on its scheduled installment date.  A payment received before or after the due date does not affect the amount of the scheduled principal reduction.
(b)  The true daily earnings method is a method to compute an interest charge by applying a daily rate to the unpaid balance of the principal amount. The earned finance charge is computed by multiplying the daily rate by the number of days the principal balance is outstanding.
(c)  For the purposes of Subsections (a) and (b), the daily rate is 1/365th of the equivalent contract rate.
(d)  Interest under the scheduled installment earnings method or true daily earnings method may not be compounded.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 909, Sec. 2.05, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 784 (S.B. 1251), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.003. Purchase From Mortgagee

Sec. 342.003.  PURCHASE FROM MORTGAGEE.  For the purposes of this chapter, a purchase from a mortgagee of an interest in a secondary mortgage loan that was made to secure that loan is treated as if it were a secondary mortgage loan.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.004. Constitutional Interest; Exemption for Loan With Interest Rate of 10 Percent or Less

Sec. 342.004.  CONSTITUTIONAL INTEREST;  EXEMPTION FOR LOAN WITH INTEREST RATE OF 10 PERCENT OR LESS.  (a)  Except as otherwise fixed by law, the maximum rate of interest is 10 percent a year.
(b)  A loan providing for a rate of interest that is 10 percent a year or less is not subject to this chapter.
(c)  A loan described by Section 302.001(d) may provide for a delinquency charge as provided by that section without being subject to this chapter or any other provision of this subtitle.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 916, Sec. 10, 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 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.005. Applicability of Chapter

Sec. 342.005.  APPLICABILITY OF CHAPTER.  Except as provided by Sections 302.001(d) and 342.004(c), a loan is subject to this chapter if the loan:
(1)  provides for interest in excess of 10 percent a year;
(2)  is extended primarily for personal, family, or household use to a person who is located in this state at the time the loan is made;
(3)  is made by a person engaged in the business of making, arranging, or negotiating those types of loans; and
(4)  either:
(A)  is not secured by a lien on real property; or
(B)  is described by Section 342.001(4), 342.301, or 342.456 and is predominantly payable in monthly installments.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 916, Sec. 11, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1235, Sec. 12, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 14, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.006. Exemption for Certain Secondary Mortgage Loans

Sec. 342.006.  EXEMPTION FOR CERTAIN SECONDARY MORTGAGE LOANS.  This chapter does not apply to a secondary mortgage loan made by a seller of property to secure all or part of the unpaid purchase price.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.007. Deferred Presentment Transaction

Sec. 342.007.  DEFERRED PRESENTMENT TRANSACTION.  The finance commission shall adopt rules providing for the regulation of deferred presentment transactions.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 13, 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 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.008. Attempt to Evade Law

Sec. 342.008.  ATTEMPT TO EVADE LAW.  A person who is a party to a deferred presentment transaction may not evade the application of this subtitle or a rule adopted under this subchapter by use of any device, subterfuge, or pretense.  Characterization of a required fee as a purchase of a good or service in connection with a deferred presentment transaction is a device, subterfuge, or pretense for the purposes of this section.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 13, 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 342 - Consumer Loans › Subchapter A. General Provisions; Applicability of Chapter › Section 342.009. Return of Property in Sale-Leaseback Transaction

Sec. 342.009.  RETURN OF PROPERTY IN SALE-LEASEBACK TRANSACTION.  The seller in a sale-leaseback agreement may terminate the agreement at any time by returning the property to the buyer in substantially the same condition as when the agreement was entered, less reasonable wear.  On return of the property the seller is liable only for rental and other allowed charges under the agreement accruing before the date of the return.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 13, 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 342 - Consumer Loans › Subchapter B. Authorized Activities; License › Section 342.051. License Required

Sec. 342.051.  LICENSE REQUIRED.  (a)  A person must hold a license issued under this chapter to:
(1)  engage in the business of making, transacting, or negotiating loans subject to this chapter;  or
(2)  contract for, charge, or receive, directly or indirectly, in connection with a loan subject to this chapter, a charge, including interest, compensation, consideration, or another expense, authorized under this chapter that in the aggregate exceeds the charges authorized under other law.
(b)  A person may not use any device, subterfuge, or pretense to evade the application of this section.
(c)  A person is not required to obtain a license under Subsection (a) if the person is:
(1)  a bank, savings bank, or savings and loan association organized under the laws of the United States or under the laws of the institution's state of domicile; or
(2)  subject to Chapter 651, Insurance Code.
(c-1)  A person who is licensed or registered under Chapter 156 or 157 is not required to obtain a license under this section to make, negotiate, or transact a residential mortgage loan, as defined by Section 180.002.
(d)  An insurance agent licensed under Subchapter B, C, D, or E, Chapter 4051, Insurance Code, is not required to obtain a license to negotiate or arrange a loan on behalf of a bank, savings bank, or savings and loan association provided that the insurance agent or the bank, savings bank, or savings and loan association does not make the provision of insurance a condition to apply for or obtain a loan or service from the bank, savings bank, or savings and loan association.
(e)  An electronic return originator who is an authorized Internal Revenue Service e-file provider is not required to obtain a license to make, negotiate, or transact a loan that is based on a person's federal income tax refund on behalf of a bank, savings bank, savings and loan association, or credit union.
(f)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(15), eff. September 1, 2011.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.  Amended by Acts 1999, 76th Leg., ch. 909, Sec. 2.06, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 604, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.116, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 905 (H.B. 2783), Sec. 13, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 64, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 65(a)(15), eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter B. Authorized Activities; License › Section 342.0515. Residential Mortgage Loan Originator Activities

Sec. 342.0515.  RESIDENTIAL MORTGAGE LOAN ORIGINATOR ACTIVITIES.  (a)  In this section, "Nationwide Mortgage Licensing System and Registry" and "residential mortgage loan originator" have the meanings assigned by Section 180.002.
(b)  Unless exempt under Section 180.003, or acting under the temporary authority described under Section 180.0511, an individual who acts as a residential mortgage loan originator in the making, transacting, or negotiating of a loan subject to this chapter must:
(1)  be individually licensed to engage in that activity under this chapter;
(2)  be enrolled with the Nationwide Mortgage Licensing System and Registry as required by Section 180.052; and
(3)  comply with other applicable requirements of Chapter 180 and rules adopted under that chapter.
(c)  Subject to Section 14.112, the finance commission shall adopt rules establishing procedures for issuing, renewing, and enforcing an individual license under this section. In adopting rules under this subsection, the finance commission shall ensure that:
(1)  the minimum eligibility requirements for issuance of an individual license are the same as the requirements of Section 180.055;
(2)  the minimum eligibility requirements for renewal of an individual license are the same as the requirements of Section 180.059; and
(3)  the applicant pays:
(A)  an investigation fee in a reasonable amount determined by the commissioner; and
(B)  a license fee in an amount determined as provided by Section 14.107.
(d)  The finance commission may adopt rules under this chapter as required to carry out the intentions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No. 110-289).
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 10, eff. June 19, 2009.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 695 (S.B. 2330), Sec. 4, eff. November 24, 2019.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 15, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter B. Authorized Activities; License › Section 342.052. Issuance of More Than One License for a Person

Sec. 342.052.  ISSUANCE OF MORE THAN ONE LICENSE FOR A PERSON.  (a)  The commissioner may issue more than one license to a person on compliance with this chapter for each license.
(b)  A person who is required to hold a license under this chapter must hold a separate license for each office at which loans are made, negotiated, serviced, held, or collected under this chapter.
(c)  A license is not required under this chapter for a place of business:
(1)  devoted to accounting or other recordkeeping;  and
(2)  at which loans are not made, negotiated, serviced, held, or collected under this chapter or Chapter 346.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.  Amended by Acts 1999, 76th Leg., ch. 909, Sec. 2.07, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter B. Authorized Activities; License › Section 342.053. Area of Business; Loans by Mail or Online

Sec. 342.053.  AREA OF BUSINESS; LOANS BY MAIL OR ONLINE.  (a)  A lender is not limited to making loans to residents of the community in which the office for which the license or other authority is granted.
(b)  A lender may make, negotiate, arrange, and collect loans by mail or online from a licensed office.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 16, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 17, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.101. Application Requirements

Sec. 342.101.  APPLICATION REQUIREMENTS.  (a)  The application for a license under this chapter must:
(1)  be under oath;
(2)  give the approximate location from which business is to be conducted;
(3)  identify the business's principal parties in interest;  and
(4)  contain other relevant information that the commissioner requires for the findings required under Section 342.104.
(b)  On the filing of one or more license applications, the applicant shall pay to the commissioner an investigation fee of $200.
(c)  On the filing of each license application, the applicant shall pay to the commissioner a license fee in an amount determined as provided by Section 14.107.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1235, Sec. 14, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 18, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.102. Bond

Sec. 342.102.  BOND.  (a)  If the commissioner requires, an applicant for a license under this chapter shall file with the application a bond that is:
(1)  in an amount not to exceed the total of:
(A)  $50,000 for the first license;  and
(B)  $10,000 for each additional license;
(2)  satisfactory to the commissioner;  and
(3)  issued by a surety company qualified to do business as a surety in this state.
(b)  The bond must be in favor of this state for the use of this state and the use of a person who has a cause of action under this chapter against the license holder.
(c)  The bond must be conditioned on:
(1)  the license holder's faithful performance under this chapter and rules adopted under this chapter; and
(2)  the payment of all amounts that become due to the state or another person under this chapter during the period for which the bond is given.
(d)  The aggregate liability of a surety to all persons damaged by the license holder's violation of this chapter may not exceed the amount of the bond.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 909, Sec. 2.08, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 19, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.103. Investigation of Application

Sec. 342.103.  INVESTIGATION OF APPLICATION.  On the filing of an application and, if required, a bond, and on payment of the required fees, the commissioner shall conduct an investigation to determine whether to issue the license.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.104. Approval or Denial of Application

Sec. 342.104.  APPROVAL OR DENIAL OF APPLICATION.  (a)  The commissioner shall approve the application and issue to the applicant a license to make loans under this chapter if the commissioner finds that:
(1)  the financial responsibility, experience, character, and general fitness of the applicant are sufficient to:
(A)  command the confidence of the public;  and
(B)  warrant the belief that the business will be operated lawfully and fairly, within the purposes of this chapter;  and
(2)  the applicant has net assets of at least $25,000 available for the operation of the business.
(b)  If the commissioner does not find the eligibility requirements of Subsection (a), the commissioner shall notify the applicant.
(c)  If an applicant requests a hearing on the application not later than the 30th day after the date of notification under Subsection (b), the applicant is entitled to a hearing not later than the 60th day after the date of the request.
(d)  The commissioner shall approve or deny the application not later than the 60th day after the date of the filing of a completed application with payment of the required fees, or if a hearing is held, after the date of the completion of the hearing on the application.  The commissioner and the applicant may agree to a later date in writing.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.105. Disposition of Fees on Denial of Application

Sec. 342.105.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the application.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter C. Application for and Issuance of License › Section 342.106. License Term

Sec. 342.106.  LICENSE TERM.  A license issued under this chapter is valid for the period prescribed by finance commission rule adopted under Section 14.112.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 20, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.151. Name and Place on License

Sec. 342.151.  NAME AND PLACE ON LICENSE.  (a)  A license must state:
(1)  the name of the license holder;  and
(2)  the address of the office from which the business is to be conducted.
(b)  A license holder may not conduct business under this chapter under a name or at a place of business in this state other than the name or office stated on the license.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.152. License Display

Sec. 342.152.  LICENSE DISPLAY.  A license holder shall display a license at the place of business provided on the license.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.153. Minimum Assets for License

Sec. 342.153.  MINIMUM ASSETS FOR LICENSE.  (a)  Except as provided by Subsection (b) or (c), a license holder shall maintain for each office for which a license is held net assets of at least $25,000 that are used or readily available for use in conducting the business of that office.
(b)  A license holder who held a license under the Texas Regulatory Loan Act and was issued a license to make loans under that chapter as provided by Section 4, Chapter 274, Acts of the 60th Legislature, Regular Session, 1967, shall maintain for the office for which that license is held net assets of at least $15,000 that are used or readily available for use in conducting the business of that office.
(c)  A license holder who paid the pawnbroker's occupational tax for 1967 and was issued a license to make loans under that chapter as provided by Section 4, Chapter 274, Acts of the 60th Legislature, Regular Session, 1967, is exempt from the minimum assets requirement of Subsection (a) for the office for which that license is held.
(d)  If a license holder holds a license to which Subsection (b) or (c) applies and subsequently transfers the license to another person, the minimum assets required under Subsection (a) shall apply to the license and the subsequent license holder.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.154. License Fee

Sec. 342.154.  LICENSE FEE. Not later than 30 days before the date the license expires, a license holder shall pay to the commissioner for each license held a fee in an amount determined as provided by Section 14.107.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1235, Sec. 15, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 21, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.155. Expiration of License on Failure to Pay Fee

Sec. 342.155.  EXPIRATION OF LICENSE ON FAILURE TO PAY FEE. If the fee for a license is not paid before the 16th day after the date on which the written notice of delinquency of payment has been given to the license holder, the license expires on that day.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 22, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.1555. Grounds for Refusing Renewal

Sec. 342.1555.  GROUNDS FOR REFUSING RENEWAL.  The commissioner may refuse to renew the license of a person who fails to comply with an order issued by the commissioner to enforce this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 23, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.156. License Suspension or Revocation

Sec. 342.156.  LICENSE SUSPENSION OR REVOCATION.  After notice and opportunity for a hearing, the commissioner may suspend or revoke a license if the commissioner finds that:
(1)  the license holder failed to pay the license fee, an examination fee, an investigation fee, or another charge imposed by the commissioner under this chapter;
(2)  the license holder, knowingly or without the exercise of due care, violated this chapter or a rule adopted or order issued under this chapter;
(3)  a fact or condition exists that, if it had existed or had been known to exist at the time of the original application for the license, clearly would have justified the commissioner's denial of the application; or
(4)  the license holder has failed to ensure that an individual acting as a residential mortgage loan originator, as defined by Section 180.002, in the making, transacting, or negotiating of a loan subject to this chapter is licensed under this chapter in accordance with Section 342.0515.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 11, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 24, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.157. Corporate Charter Forfeiture

Sec. 342.157.  CORPORATE CHARTER FORFEITURE.  (a)  A license holder who violates this chapter is subject to revocation of the holder's license and, if the license holder is a corporation, forfeiture of its charter.
(b)  When the attorney general is notified of a violation of this chapter and revocation of a license, the attorney general shall file suit in a district court in Travis County, if the license holder is a corporation, for forfeiture of the license holder's charter.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 342 - Consumer Loans › Subchapter D. License › Section 342.158. License Suspension or Revocation Filed With Public Records

Sec. 342.158.  LICENSE SUSPENSION OR REVOCATION FILED WITH PUBLIC RECORDS.  The decision of the commissioner on the suspension or revocation of a license and the evidence considered by the commissioner in making the decision shall be filed in the public records of the commissioner.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.