Texas § FI.342.301 - MAXIMUM INTEREST CHARGE
Full text of Texas The Texas Constitution § FI.342.301 — MAXIMUM INTEREST CHARGE, with citation guidance and answers to common questions.
§ FI.342.301. MAXIMUM INTEREST CHARGE
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. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
Frequently Asked Questions About Texas § FI.342.301
What does The Texas Constitution § FI.342.301 cover?
Section FI.342.301 ("MAXIMUM INTEREST CHARGE") 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.342.301?
A common citation format is "The Texas Constitution § FI.342.301" (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.342.301 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.