Texas Finance Code 347.107 – Notice of Rate Adjustment
(a) After the notice provided by this section has been given, the rate shall be increased or decreased by the amount determined by this subchapter.
(b) Before the 40th day preceding the payment date on which a rate adjustment is to take effect, the creditor shall mail to the consumer, postage prepaid, a notice that states:
(1) the initial credit transaction rate or the adjusted rate in effect on the date of the notice, as appropriate;
(2) the index base, or the index value used to compute the preceding rate adjustment, as appropriate, and the date on which the index base or value was determined;
(3) the index value used to compute the rate adjustment for which the notice is sent and the date on which the index value was determined;
(4) the amount of the rate adjustment;
(5) the new adjusted rate;
(6) the amount of the monthly payments on the indebtedness on the date of the notice;
(7) the adjusted amount of the monthly payments and the date on which the adjustment takes effect; and
(8) a statement of the prepayment rights of the consumer as set forth in the credit document.
Terms Used In Texas Finance Code 347.107
- Consumer: means a person to whom credit is extended in a credit transaction. See Texas Finance Code 347.002
- Credit document: means a written instrument evidencing a credit transaction and includes all written agreements between each consumer and creditor that relate to that transaction. See Texas Finance Code 347.002
- Credit transaction: means :
(A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
(i) subject to a finance charge; or
(ii) payable in more than four installments, not including a down payment; and
(B) a lease or bailment described by § 347. See Texas Finance Code 347.002 - Creditor: means a:
(A) person who extends credit or arranges for the extension of credit in a credit transaction; or
(B) retailer or broker, as defined by § 1201. See Texas Finance Code 347.002