| (a) Definition. In this section, "multiple-advance
loan" means a loan agreement subject to Texas Finance Code, Chapter
342, under which more than one loan or advance may be made to a borrower
from time to time.
(b) Requirements for multiple-advance loans. In connection
with a multiple-advance loan, an authorized lender must comply with
the interest limitations, disclosure requirements, and other requirements
provided in Texas Finance Code, §342.455.
(c) Loans not covered. The following loans are not
subject to this section or to Texas Finance Code, §342.455:
(1) loans in which all advances occur on the same date;
and
(2) loans in which all advances after the initial advance
occur because of the borrower's default (e.g., collateral protection
insurance fees, repossession fees, court costs).
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