(a) An amount of a discount in, or charged under, an account purchase transaction is not interest.
(b) For the purposes of this chapter, the parties’ characterization of an account purchase transaction as a purchase is conclusive that the account purchase transaction is not a transaction for the use, forbearance, or detention of money.

Terms Used In Texas Finance Code 306.103

  • Forbearance: A means of handling a delinquent loan. A