SUBCHAPTER A GENERAL PROVISIONS; APPLICABILITY OF CHAPTER
- Texas Section 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;...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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....
- Texas Section 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 B AUTHORIZED ACTIVITIES; LICENSE
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
SUBCHAPTER C APPLICATION FOR AND ISSUANCE OF LICENSE
- Texas Section 342.053 - Area Of Business; Loans By Mail
(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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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:...
SUBCHAPTER D LICENSE
- Texas Section 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...
- Texas Section 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...
- Texas Section 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....
- Texas Section 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...
- Texas Section 342.154 - Annual License Fee
Not later than December 1, a license holder shall pay to the commissioner for each license held an annual fee for the year beginning the...
- Texas Section 342.155 - Expiration Of License On Failure To Pay Annual Fee
If the annual fee for a license is not paid before the 16th day after the date on which the written notice of delinquency of...
- Texas Section 342.156 - License Suspension Or Revocation
After notice and a hearing the commissioner may suspend or revoke a license if the commissioner finds that: (1) the license holder failed to pay...
- Texas Section 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...
- Texas Section 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...
- Texas Section 342.159 - Reinstatement Of Suspended License; Issuance Of New License After Revocation
The commissioner may reinstate a suspended license or issue a new license on application to a person whose license has been revoked if at the...
- Texas Section 342.160 - Surrender Of License
A license holder may surrender a license issued under this chapter by delivering to the commissioner: (1) the license; and (2) a written notice of...
- Texas Section 342.161 - Effect Of License Suspension, Revocation, Or Surrender
(a) The suspension, revocation, or surrender of a license issued under this chapter does not affect the obligation of a contract between the license holder...
- Texas Section 342.162 - Moving An Office
(a) A license holder shall give written notice to the commissioner before the 30th day preceding the date the license holder moves an office from...
SUBCHAPTER E INTEREST CHARGES ON NON-REAL PROPERTY LOANS
- Texas Section 342.163 - Transfer Or Assignment Of License
A license may be transferred or assigned only with the approval of the commissioner. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff....
- Texas Section 342.201 - Maximum Interest Charge And Administrative Fee
(a) A loan contract under this chapter that is a regular transaction and is not secured by real property may provide for an interest charge...
- Texas Section 342.202 - Maximum Charge For Loan With Single Repayment
A loan contract that exceeds the maximum cash advance under Section 342.251 and that is payable in a single installment may provide for an interest...
- Texas Section 342.203 - Additional Interest For Default: Regular Transaction
(a) A loan contract that includes precomputed interest or uses the scheduled installment earnings method and that is a regular transaction may provide for additional...
- Texas Section 342.204 - Additional Interest For Installment Deferment: Regular Transaction
(a) On a loan contract that includes precomputed interest or uses the scheduled installment earnings method and that is a regular transaction, an authorized lender...
- Texas Section 342.205 - Collection Of Default Or Deferment Interest
Interest for default under Section 342.203 or for installment deferment under Section 342.204 may be collected when it accrues or at any time after it...
SUBCHAPTER F ALTERNATE CHARGES FOR CERTAIN LOANS
- Texas Section 342.206 - Additional Interest For Default: Irregular Transaction
(a) A loan contract that includes precomputed interest and that is an irregular transaction may provide for additional interest for default using the true daily...
- Texas Section 342.251 - Maximum Cash Advance
The maximum cash advance of a loan made under this subchapter is an amount computed under Subchapter C, Chapter 341, using the reference base amount...
- Texas Section 342.252 - Alternate Charges
(a) Instead of the charges authorized by Section 342.201, a loan contract may provide for: (1) on a cash advance of less than $30, an...
- Texas Section 342.253 - Maximum Interest Charge For Loan With Single Repayment
A loan contract to which Section 342.251 applies and that is payable in a single installment may provide for an acquisition charge and an interest...
- Texas Section 342.254 - No Other Charges Authorized
(a) On a loan made under this subchapter a lender may not contract for, charge, or receive an amount unless this subchapter authorizes the amount...
- Texas Section 342.255 - Maximum Loan Term
The maximum scheduled term of a loan made under this subchapter is: (1) for a loan of $100 or less, the lesser of: (A) one...
- Texas Section 342.256 - Refund
(a) An acquisition charge authorized under Section 342.252(1), (2), or (3) is considered to be earned at the time a loan is made and is...
- Texas Section 342.257 - Default Charge; Deferment Of Payment
The provisions of Subchapter E relating to additional interest for default and additional interest for the deferment of installments apply to a loan made under...
- Texas Section 342.258 - Schedules For Weekly, Biweekly, Or Semimonthly Installments
The commissioner may prepare schedules that may be used by an authorized lender for the repayment of a loan made under this subchapter by weekly,...
- Texas Section 342.259 - Loans With Larger Advances
(a) Instead of the charges authorized by Sections 342.201 and 342.252, a loan made under this subchapter with a maximum cash advance computed under Subchapter...
SUBCHAPTER G INTEREST AND OTHER CHARGES ON SECONDARY MORTGAGE LOANS
- Texas Section 342.260 - Alternate Interest Charge Computation Methods
(a) A loan contract under this subchapter may provide for an interest charge computed using the true daily earnings method or the scheduled installment earnings...
- Texas Section 342.301 - Maximum Interest Charge
(a) A secondary mortgage loan that is a regular transaction may provide for an interest charge on the cash advance that is precomputed and that...
- Texas Section 342.302 - Additional Interest For Default: Regular Transaction Or Transaction Including Simple Interest
(a) A secondary mortgage loan that includes precomputed interest and that is a regular transaction may provide for additional interest for default if any part...
- Texas Section 342.303 - Additional Interest For Installment Deferment: Regular Transactions
(a) On a secondary mortgage loan that includes precomputed interest or uses the scheduled installment earnings method and that is a regular transaction, an authorized...
- Texas Section 342.304 - Collection Of Default Or Deferment Interest
Interest for default under Section 342.302 or for installment deferment under Section 342.303 may be collected when it accrues or at any time after it...
- Texas Section 342.305 - Additional Interest For Default: Irregular Transaction
A secondary mortgage loan that includes precomputed interest and that is an irregular transaction may provide for additional interest for default using the true daily...
- Texas Section 342.306 - Date Of First Scheduled Installment
On a secondary mortgage loan made under this chapter the due date of the first installment may not be scheduled later than three months after...
- Texas Section 342.307 - Amounts Authorized To Be Included In Contract
A secondary mortgage loan contract may provide for: (1) reasonable fees or charges paid to the trustee in connection with a deed of trust or...
SUBCHAPTER H REFUND OF PRECOMPUTED INTEREST
- Texas Section 342.308 - Amounts Authorized To Be Collected Or Added To Loan
(a) A lender or a person who is assigned a secondary mortgage loan may collect on or before the closing of the loan, or include...
- Texas Section 342.351 - Refund Of Precomputed Interest: Sum Of The Periodic Balances
(a) This section applies to a loan contract that includes precomputed interest authorized under Subchapter F or G and that is a regular transaction. (b)...
- Texas Section 342.352 - Refund Of Precomputed Interest On Contract: Scheduled Installment Earnings
(a) This section applies to a loan contract: (1) that includes precomputed interest and to which Section 342.351 does not apply; (2) that includes interest...
SUBCHAPTER I INSURANCE
- Texas Section 342.353 - No Refund On Partial Prepayment Or Of Amount Less Than $1
Sec. 342.353. NO REFUND ON PARTIAL PREPAYMENT OR OF AMOUNT LESS THAN $1. A refund is not required under this subchapter for a partial prepayment...
- Texas Section 342.401 - Required Property Insurance
(a) On a loan that is subject to Subchapter E with a cash advance of $300 or more, a lender may require a borrower to...
- Texas Section 342.402 - Credit Life Insurance, Credit Health And Accident Insurance, Or Involuntary Unemployment Insurance
(a) On a loan made under this chapter that is subject to Subchapter E with a cash advance of $100 or more, a lender may:...
- Texas Section 342.4021 - Agreements Regarding Debt Suspension, Debt Cancellation, And Gap Waiver
(a) In connection with a loan made under this chapter that is subject to Section 342.201(d) or 342.301(c), a lender may offer to the borrower...
- Texas Section 342.403 - Maximum Amount Of Insurance Coverage
(a) At any time the total amount of the policies of credit life insurance in force on one borrower on one loan contract may not...
- Texas Section 342.404 - Insurance Notice
(a) If insurance is required on a loan made under this chapter, the lender shall give to the borrower written notice that clearly and conspicuously...
- Texas Section 342.405 - Insurance May Be Furnished By Borrower
(a) If insurance is required on a loan made under this chapter, the borrower may furnish the insurance coverage through an insurance policy that is...
- Texas Section 342.406 - Borrower's Failure To Provide Required Insurance
(a) If a borrower fails to obtain or maintain insurance coverage required under a loan contract or requests the lender to obtain that coverage, the...
- Texas Section 342.407 - Requirements For Including Insurance Charge In Contract
Insurance for which a charge is included in a loan contract must be written: (1) at lawful rates; (2) in accordance with the Insurance Code;...
- Texas Section 342.408 - Furnishing Of Insurance Document To Borrower
If a lender obtains insurance for which a charge is included in the loan contract, the lender, not later than the 30th day after the...
- Texas Section 342.409 - Lender's Duty If Insurance Is Adjusted Or Terminated
(a) If insurance for which a charge is included in or added to the loan contract is canceled, adjusted, or terminated, the lender shall: (1)...
- Texas Section 342.410 - Payment For Insurance From Loan Proceeds
A lender, including an officer, agent, or employee of the lender, who accepts insurance under this subchapter as protection for a loan: (1) may deduct...
- Texas Section 342.411 - Insurance Or Other Gain Not Interest
Any gain or advantage to the lender or the lender's employee, officer, director, agent, general agent, affiliate, or associate from insurance or from another agreement...
- Texas Section 342.412 - Action Under Subchapter Not Sale Of Insurance
Arranging for insurance or collecting an identifiable charge as authorized by this subchapter is not a sale of insurance. Amended by Acts 1999, 76th Leg.,...
- Texas Section 342.413 - Required Agent Or Broker Prohibited
A lender may not by any direct or indirect method require the purchase of insurance from an agent or broker designated by the lender. Amended...
- Texas Section 342.414 - Declination Of Equal Insurance Coverage Prohibited
A lender may not decline at any time existing insurance coverage providing substantially equal benefits that comply with this subchapter. Amended by Acts 1999, 76th...
- Texas Section 342.415 - Effect Of Unauthorized Insurance Charge
(a) If a lender charges for insurance an amount that is not authorized under this subchapter, the lender: (1) is not entitled to collect an...
SUBCHAPTER J AUTHORIZED LENDER'S DUTIES AND AUTHORITY
- Texas Section 342.416 - Nonfiling Insurance
(a) Instead of charging fees for the filing, recording, and releasing of a document securing a loan to which Subchapter E applies, an authorized lender...
- Texas Section 342.451 - Delivery Of Information To Borrower
(a) When a loan is made under this chapter, the lender shall deliver to the borrower, or to one borrower if there is more than...
- Texas Section 342.452 - Receipt For Cash Payment
A lender shall give a receipt to a person making a cash payment on a loan. Added by Acts 1999, 76th Leg., ch. 62, Sec....
- Texas Section 342.453 - Acceptance Of Prepayment
At any time during regular business hours, the lender shall accept prepayment of a loan in full or, if the amount tendered is less than...
- Texas Section 342.454 - Return Of Instruments To Borrower On Repayment
Within a reasonable time after a loan is repaid in full or an open-end account is terminated according to the terms of the contract, a...
- Texas Section 342.455 - Agreement For More Than One Loan Or Cash Advance
(a) A lender and a borrower may enter an agreement under which one or more loans or cash advances are from time to time made...
- Texas Section 342.456 - Agreement To Modify Term Of Secondary Mortgage Loan Contract
(a) A lender and a borrower may enter into an agreement under which a term of a secondary mortgage loan contract is amended, restated, or...
SUBCHAPTER K LIMITATIONS ON AUTHORIZED LENDER
- Texas Section 342.457 - Automobile Club Membership Offered In Connection With A Loan
(a) An authorized lender may, at the time or after a loan under Subchapter E is made, offer to sell to the borrower and finance...
- Texas Section 342.501 - Obligation Under More Than One Contract
(a) An authorized lender may not induce or permit a person or a husband and wife to be directly or indirectly obligated under more than...
- Texas Section 342.502 - Amount Authorized
(a) A lender may not directly or indirectly charge, contract for, or receive an amount that is not authorized under this chapter in connection with...
- Texas Section 342.503 - Security For Loan
(a) A lender may not take as security for a loan made under this chapter an assignment of wages. (b) A lender may not take...
- Texas Section 342.504 - Confession Of Judgment; Power Of Attorney
A lender may not take a confession of judgment or a power of attorney authorizing the lender or a third person to confess judgment or...
- Texas Section 342.505 - Disclosure Of Amount Financed And Schedule Of Payments
A lender may not take a promise to pay or loan obligation that does not disclose the amount financed and the schedule of payments, except...
- Texas Section 342.506 - Instrument With Blank Prohibited
A lender may not take an instrument in which a blank is left to be filled in after the loan is made. Added by Acts...
- Texas Section 342.507 - Waiver Of Borrower's Right Prohibited
A lender may not take an instrument in which a borrower waives any right accruing to the borrower under this chapter. Added by Acts 1999,...
SUBCHAPTER L ADMINISTRATION OF CHAPTER
- Texas Section 342.508 - Maximum Loan Term
A lender may not enter a loan contract under Section 342.201(a) or Section 342.201(e) under which the borrower agrees to make a scheduled payment of...
- Texas Section 342.551 - Adoption Of Rules
(a) The Finance Commission of Texas may adopt rules to enforce this chapter. (b) The commissioner shall recommend proposed rules to the Finance Commission of...
- Texas Section 342.552 - Examination Of Lenders; Access To Records
(a) The commissioner or the commissioner's representative shall, at the times the commissioner considers necessary: (1) examine each place of business of each authorized lender;...
- Texas Section 342.553 - General Investigation
(a) To discover a violation of this chapter or to obtain information required under this chapter, the commissioner or the commissioner's representative may investigate the...
- Texas Section 342.554 - Certificate; Certified Document
On application by any person and on payment of any associated cost, the commissioner shall furnish under the commissioner's seal and signed by the commissioner...
- Texas Section 342.555 - Transcript Of Hearing: Public
The transcript of a hearing held by the commissioner under this chapter is a public record. Added by Acts 1999, 76th Leg., ch. 62, Sec....
- Texas Section 342.556 - Appointment Of Agent
(a) An authorized lender shall maintain on file with the commissioner a written appointment of a resident of this state as the lender's agent for...
- Texas Section 342.557 - Payment Of Examination Costs And Administration Expenses
An authorized lender shall pay to the commissioner an amount assessed by the commissioner to cover the direct and indirect cost of an examination of...
- Texas Section 342.558 - Authorized Lender's Records
(a) An authorized lender shall maintain a record of each loan made under this chapter as is necessary to enable the commissioner to determine whether...
- Texas Section 342.559 - Annual Report
(a) Each year, not later than May 1 or a later date set by the commissioner, an authorized lender shall file with the commissioner a...
SUBCHAPTER M DEFERRED PRESENTMENT TRANSACTIONS
- Texas Section 342.560 - Conducting Associated Business
An authorized lender may conduct business under this chapter in an office, office suite, room, or place of business in which any other business is...
- Texas Section 342.601 - Definitions
In this subchapter: (1) "Lender" means a lender licensed under this chapter. (2) "Member of the United States military" means: (A) a member of the...
- Texas Section 342.602 - Disclosures To Military Borrowers
Before engaging in a deferred presentment transaction, a lender shall provide to a customer who is a member of the United States military or the...
- Texas Section 342.603 - Prohibited Practices
A lender may not contact the employer of a member of the United States military about a deferred presentment debt of the member or the...
- Texas Section 342.604 - Military Borrower
(a) A lender may not engage in collection activity against a borrower who is: (1) a member of the armed forces of the United States...
- Texas Section 342.605 - Repayment Agreement
With respect to a deferred presentment transaction, a lender shall honor a repayment agreement entered into with a borrower who is a member of the...