Tex. Finance Code § 306.004
DETERMINING RATES OF INTEREST BY SPREADING
Texas · Texas Finance Code · Status: effective
Cite this
- Citation
- Tex. Finance Code § 306.004, DETERMINING RATES OF INTEREST BY SPREADING, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/647133
- Permanent ID
ys:prov:647133@1- SHA-256
3fc05640e1efee3a78a0bd2edabcdef94c0ca652963216cb4e3c37844f79a7a0
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
(a) To determine whether a commercial loan 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 commercial loan 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.