Texas § FI.342.260 - ALTERNATE INTEREST CHARGE COMPUTATION METHODS
Full text of Texas The Texas Constitution § FI.342.260 — ALTERNATE INTEREST CHARGE COMPUTATION METHODS, with citation guidance and answers to common questions.
§ FI.342.260. ALTERNATE INTEREST CHARGE COMPUTATION METHODS
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 method that does not exceed the equivalent rate or effective return of the installment account handling charge for the original scheduled term of the loan. (b) The principal balance of a loan contract authorized by this section may not include the acquisition charge, installment account handling charge, default charges, or deferment charges or the return check fees authorized by Section 3.506 , Business & Commerce Code. (c) Interest may accrue on the principal balance 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. (d) A payment on a loan contract authorized by this section shall be applied to the borrower's account in the following order or, at the lender's option, under another method of applying a payment that is more favorable to the borrower: (1) the straight line allocation of the acquisition charge using the original scheduled term of the loan based on the proportional scheduled payment that was paid or scheduled to be paid; (2) default charges authorized by Section 342.257 ; (3) return check fees authorized by Section 3.506 , Business & Commerce Code; (4) any other charges authorized by this subchapter; (5) accrued interest authorized by this section; and (6) principal. Added by Acts 2013, 83rd Leg., R.S., Ch. 784 (S.B. 1251 ), Sec. 7, eff. September 1, 2013. SUBCHAPTER G. INTEREST AND OTHER CHARGES ON SECONDARY MORTGAGE LOANS
Frequently Asked Questions About Texas § FI.342.260
What does The Texas Constitution § FI.342.260 cover?
Section FI.342.260 ("ALTERNATE INTEREST CHARGE COMPUTATION METHODS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § FI.342.260?
A common citation format is "The Texas Constitution § FI.342.260" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § FI.342.260 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.