Tex. Fin. Code Section 302.001
Contracting For, Charging, or Receiving Interest or Time Price Differential; Usurious Interest

(a)

A creditor may contract for, charge, and receive from an obligor interest or time price differential.

(b)

The maximum rate or amount of interest is 10 percent a year except as otherwise provided by law. A greater rate of interest than 10 percent a year is usurious unless otherwise provided by law. All contracts for usurious interest are contrary to public policy and subject to the appropriate penalty prescribed by Chapter 305 (Penalties and Remedies).

(c)

To determine the interest rate of a loan under this subtitle, all interest at any time contracted for shall be aggregated and amortized using the actuarial method during the stated term of the loan.

(d)

In addition to interest authorized by Subsection (b), a loan providing for a rate of interest that is 10 percent a year or less may provide for a delinquency charge on the amount of any payment in default for a period of not less than 10 days in an amount not to exceed the greater of five percent of the amount of the payment or $7.50. The charging of the delinquency charge does not make the loan subject to Chapter 342 (Consumer Loans) or any other provision of Subtitle B.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 916, Sec. 8, eff. Sept. 1, 2001.

Source: Section 302.001 — Contracting For, Charging, or Receiving Interest or Time Price Differential; Usurious Interest, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­302.­htm#302.­001 (accessed May 11, 2024).

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Accessed:
May 11, 2024

§ 302.001’s source at texas​.gov