Sec. 302.104. LOAN TO PURCHASE INTEREST IN ENTITY WITH FOREIGN REAL PROPERTY AS PRINCIPAL ASSET. (a) A loan the proceeds of which are used primarily to purchase an interest in a trust or other entity that has as its principal asset real property located outside the United States is:
(1) not subject to Subtitle B; and
(2) subject to the interest rate limitations of Chapter 303.
(b) For the purpose of determining the interest rate on a loan to which this section applies, all interest contracted for, charged, or received shall be amortized, prorated, allocated, and spread over the full stated term of the loan.
(c) This section does not affect application of a law of this state governing collateral that may be used to secure a loan to which this section applies.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Section: Previous 302.001 302.002 302.101 302.102 302.103Last modified: September 28, 2016