Texas Finance Code 302.104 – Loan to Purchase Interest in Entity With Foreign Real Property as Principal Asset
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(a) A loan the proceeds of which are used primarily to purchase an interest in a trust or other entity that has as its principal asset real property located outside the United States is:
(1) not subject to Subtitle B; and
(2) subject to the interest rate limitations of Chapter 303.
(b) For the purpose of determining the interest rate on a loan to which this section applies, all interest contracted for, charged, or received shall be amortized, prorated, allocated, and spread over the full stated term of the loan.
Terms Used In Texas Finance Code 302.104
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) This section does not affect application of a law of this state governing collateral that may be used to secure a loan to which this section applies.