Texas § FI.346.003 - REVOLVING CREDIT ACCOUNTS

§ FI.346.003. REVOLVING CREDIT ACCOUNTS

REVOLVING CREDIT ACCOUNTS. (a) A revolving credit account is an open-end account: (1) that is established by a creditor for a customer under a written agreement between the creditor and the customer; (2) that the customer accepts by using the account; and (3) under which: (A) the unpaid balance of and interest on the extensions of credit are debited to the account; (B) interest is not precomputed but may be computed on the balances of the account outstanding from time to time; (C) the customer may defer payment of any part of the balance of the account; and (D) the customer may obtain from the creditor one or more extensions of credit as described by Subsection (b) or (c). (b) A revolving loan account is a revolving credit account under which a customer may obtain a loan from a creditor. (c) A revolving triparty account is a revolving credit account under which: (1) a customer may use a credit card to: (A) obtain a loan from a creditor, with the advance made by the creditor or a person participating with the creditor; (B) lease goods from a person participating with the creditor; or (C) purchase goods or services from a person participating with the creditor; (2) the creditor is obligated to pay the participating person; and (3) the customer is obligated to pay the creditor the amount of the loan or cost of the lease or purchase. (d) Interest may be computed on the balance of the account from time to time. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.