Texas Finance Code - Section 302.001. Contracting For, Charging, Or Receiving Interest Or Time Price Differential; Usurious Interest
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Texas Laws > Finance Code > Texas Finance Code - Section 302.001. Contracting For, Charging, Or Receiving Interest Or Time Price Differential; Usurious Interest
Section: 278.001 278.051 278.052 278.053 278.101 301.001 301.002 302.001 302.002 302.101 302.102 302.103 302.104 303.001 303.002
§ 302.001. CONTRACTING FOR, CHARGING, OR RECEIVING
INTEREST OR TIME PRICE DIFFERENTIAL; USURIOUS INTEREST. (a) A
creditor may contract for, charge, and receive from an obligor
interest or time price differential.
(b) The maximum rate or amount of interest is 10 percent a
year except as otherwise provided by law. A greater rate of
interest than 10 percent a year is usurious unless otherwise
provided by law. All contracts for usurious interest are contrary
to public policy and subject to the appropriate penalty prescribed
by Chapter 305.
(c) To determine the interest rate of a loan under this
subtitle, all interest at any time contracted for shall be
aggregated and amortized using the actuarial method during the
stated term of the loan.
(d) In addition to interest authorized by Subsection (b), a
loan providing for a rate of interest that is 10 percent a year or
less may provide for a delinquency charge on the amount of any
payment in default for a period of not less than 10 days in an amount
not to exceed the greater of five percent of the amount of the
payment or $7.50. The charging of the delinquency charge does not
make the loan subject to Chapter 342 or any other provision of
Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 916, § 8, eff. Sept. 1, 2001.
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Last modified: August 11, 2007