Texas Finance Code 303.105 – Open-End Account: Disclosure of Certain Rate Variations
(a) Except as provided by Subsection (b), a variation in an interest rate on an account resulting from operation of the previously disclosed index, formula, or provision of law is not required to be disclosed under § 303.101 or 303.103.
(b) Except as inconsistent with federal law, the creditor on an open-end account agreement that provides for a variable interest rate according to an index, formula, or provision of law, that is primarily for personal, family, or household use, and that is subject to this chapter shall give to the obligor notice of a change in the rate resulting from operation of the index, formula, or provision of law. The notice must be given:
(1) by a document mailed on or before the beginning of the first cycle for which the change becomes effective; or
(2) on or with:
(A) the billing statement for a billing cycle that precedes the cycle for which the change becomes effective, if the account is covered by § 303.006(c); or
(B) any billing statement, if the account is not covered by § 303.006(c).
Terms Used In Texas Finance Code 303.105
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC