Texas Finance Code - Section 302.101. Determining Rates Of Interest By Spreading
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Texas Lawyer > Finance Code > Texas Finance Code - Section 302.101. Determining Rates Of Interest By Spreading
§ 302.101. DETERMINING RATES OF INTEREST BY
SPREADING. (a) To determine whether a loan secured in any part by
an interest in real property, including a lien, mortgage, or
security interest, 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 loan described by Subsection (a) 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.
Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1,
1999.
Section: 278.052 278.053 278.101 301.001 301.002 302.001 302.002 302.101 302.102 302.103 302.104 303.001 303.002 303.003 303.004
Last modified: August 10, 2007
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