Texas Finance Code 303.004 – Monthly Ceiling
Current as of: 2024 | Check for updates
|
Other versions
(a) The monthly ceiling may be used as an alternative to the weekly ceiling only for a contract that:
(1) provides for a variable rate, including a contract for an open-end account; and
(2) is not made for personal, family, or household use.
(b) A contract that provides for the use of the monthly ceiling may not provide for the use of another rate ceiling provided under this subchapter.
Terms Used In Texas Finance Code 303.004
- Contract: A legal written agreement that becomes binding when signed.
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(c) If the parties agree that the rate may be adjusted monthly, they may agree that the rate from time to time in effect may not exceed the monthly ceiling from time to time in effect, and the monthly ceiling is the ceiling on those contracts.