Tex. Finance Code § 342.253
MAXIMUM INTEREST CHARGE FOR LOAN WITH SINGLE REPAYMENT
Texas · Texas Finance Code · Status: effective
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- Citation
- Tex. Finance Code § 342.253, MAXIMUM INTEREST CHARGE FOR LOAN WITH SINGLE REPAYMENT, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/647249
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Full text
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 charge on the cash advance that does not exceed a rate or amount that would produce the same effective return, determined as a true daily earnings rate, as allowed under Section 342.252 considering the amount and term of the loan. If a loan that has a term in excess of one month under this section is prepaid in full, the lender may earn a minimum of the acquisition charge and interest charge for one month. If a loan under this section has an initial term of less than one month, the lender may earn a minimum of the acquisition charge and an interest charge that produces the same effective return as the installment account handling charge computed at a daily rate for the term the loan is outstanding.