(a) If the first installment due date is one month
or less from the date of the loan, the authorized lender may retain
for each elapsed day between the date of the loan and prepayment before
the first installment due date, 1/30th of the installment account
handling charge that could be retained if the first installment period
were one month and the loan was prepaid in full on the first installment
due date. All interest in excess of such amount must be refunded or
credited to the borrower.
(b) If the first installment due date is more than
one month from the contract date but less than or equal to one month
and 15 days from the contract date, the authorized lender may retain
for each elapsed day between the date of the loan and prepayment before
the first installment due date, 1/30th of the interest that could
be retained if the first installment period were one month and the
loan was prepaid in full on the first installment due date up to a
maximum of 30 days. All interest in excess of such amount must be
refunded or credited to the borrower.
(c) To calculate the amount of the refund of unearned
interest, an authorized lender must consider any installments that
were deferred.
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Source Note: The provisions of this §83.756 adopted to be effective November 9, 2006, 31 TexReg 8999; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 5142 |