Tex. Fin. Code Section 303.015
Variable Rate

(a)

The parties to a contract, including a contract for an open-end account, may agree to any index, formula, or provision of law by which the interest rate or amount of time price differential will be determined, but the agreed rate of interest or yield from an amount of time price differential may not exceed the amount that would be produced by the rate ceiling applicable to the contract.

(b)

A variable contract rate described by this section may not be used in a contract in which the interest or time price differential is precomputed and added into the amount of the contract at the time the contract is made.

(c)

A variable rate agreement for credit extended primarily for personal, family, or household use must include the disclosures identified for variable rate contracts required by regulations issued by the Federal Reserve Board and the Consumer Financial Protection Bureau under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.), as amended, except that if that Act does not apply because of the amount of the transaction, the following disclosure must be included in a size equal to at least 10-point type that is boldface, capitalized, underlined, or otherwise set out from surrounding material so as to be conspicuous:
“NOTICE TO CONSUMER: UNDER TEXAS LAW, IF YOU CONSENT TO THIS AGREEMENT, YOU MAY BE SUBJECT TO A FUTURE RATE AS HIGH AS 24 PERCENT PER YEAR.”
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 5, eff. September 1, 2023.

Source: Section 303.015 — Variable Rate, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­303.­htm#303.­015 (accessed Apr. 20, 2024).

303.001
Use of Ceilings 303.002
Weekly Ceiling 303.003
Computation of Weekly Ceiling 303.004
Monthly Ceiling 303.005
Computation of Monthly Ceiling 303.006
Quarterly Ceiling 303.007
Annualized Ceiling 303.008
Computation of Quarterly and Annualized Ceiling 303.009
Maximum and Minimum Weekly, Monthly, Quarterly, or Annualized Ceiling 303.010
Computation of Ceiling if Information Unavailable 303.011
Publication of Rate Ceilings 303.012
Judicial Notice 303.013
Determination of Ceiling for Contract to Renew or Extend Debt Payment 303.014
Rate for Lender Credit Card Agreement with Merchant Discount 303.015
Variable Rate 303.016
Charging of Rate Lower than Agreed Rate 303.017
Various Charges on Consumer Loans Made by Particular Lenders 303.101
Open-end Account: Ceilings 303.102
Variable Rate Open-end Account: Ceilings 303.103
Open-end Account: Change of Agreement Term 303.104
Disclosure of Decrease in Interest Rate Not Required on Open-end Accounts Involving Credit Card Transaction or Merchant Discount 303.105
Open-end Account: Disclosure of Certain Rate Variations 303.106
Open-end Account: Ceiling for Plan or Arrangement 303.201
License Required 303.202
Applicability of Subtitle B 303.203
Automobile Club Membership Offered in Connection with a Loan 303.301
Agreement to Which Chapter Does Not Apply 303.302
Requirements Inconsistent with Federal Law 303.401
When Act or Omission Not Violation 303.402
Penalty for Violation of Chapter for Certain Contracts Subject to Subtitle B 303.403
Penalty for Violation of Ceiling in Certain Contracts 303.404
Enforcement by Consumer Credit Commissioner 303.405
Examination of Records 303.406
Enforcement by Credit Union Commissioner 303.407
Enforcement by Texas Department of Insurance 303.501
Applicability of Credit Union Act
Green check means up to date. Up to date

Accessed:
Apr. 20, 2024

§ 303.015’s source at texas​.gov