Texas § 342.301 MAXIMUM INTEREST CHARGE.

Texas Statutes

§ 342.301 — MAXIMUM INTEREST CHARGE.

Texas § 342.301

Code FIFinance Code

This text of Texas § 342.301 (MAXIMUM INTEREST CHARGE.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 342.301 (2026).

Text

Sec. 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 does not exceed a rate or amount that would produce the same effective return as allowed under Subchapter A , Chapter 303 .

(b)For the purpose of Subsection (a):

(1)when the loan is made an interest charge may be computed for the full term of the loan contract;

(2)if the period before the first installment due date includes a part of a month that is longer than 15 days, that portion of a month may be considered a full month; and

(3)if a loan contract provides for precomputed interest, the amount of the loan is the total of:

(A)the cash advance; and

(B)the amount of precomputed interest.

(c)A secondary m

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Sec. 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 does not exceed a rate or amount that would produce the same effective return as allowed under Subchapter A , Chapter 303 .
(b) For the purpose of Subsection (a):
(1) when the loan is made an interest charge may be computed for the full term of the loan contract;
(2) if the period before the first installment due date includes a part of a month that is longer than 15 days, that portion of a month may be considered a full month; and
(3) if a loan contract provides for precomputed interest, the amount of the loan is the total of:
(A) the cash advance; and
(B) the amount of precomputed interest.
(c) A secondary mortgage loan may provide for a rate or amount of interest calculated using the true daily earnings method or the scheduled installment earnings method that does not exceed the alternative rate ceiling in Subchapter A , Chapter 303 . Interest may accrue on the principal balance and amounts added to principal after the date of the loan contract from time to time unpaid at the rate provided for by the contract until the date of payment in full or demand for payment in full. An interest charge under this subsection may not be precomputed.