An authorized lender may collect an administrative fee pursuant
to Texas Finance Code, §342.201(f), on interest-bearing and precomputed
loans.
(1) As an alternative to the maximum administrative
fee specified in Texas Finance Code, §342.201(f), an authorized
lender may collect an administrative fee that does not exceed $100.
(2) An administrative fee may not be contracted for,
charged, or received by an authorized lender directly or indirectly
on a renewal or modification of an existing obligation that has an
interest charge authorized by Texas Finance Code, §342.201(e)
more than once in any 365-day period. An administrative fee may not
be contracted for, charged, or received by an authorized lender directly
or indirectly on a renewal or modification of an existing obligation
that has an interest charge authorized by Texas Finance Code, §342.201(a)
or (d) more than once in any 180-day period. The administrative fee
may be contracted for, charged, or received in a renewal or modification
if the authorized lender did not contract for, charge, or receive
the administrative fee on any previous obligation within the appropriate
period.
(3) An administrative fee may not be contracted for,
charged, or received by an authorized lender on the refinance of a
loan that utilizes Texas Finance Code, §342.201(a), (d), or (e)
rates for a period of 365 days after the lender has entered into a
Texas Finance Code, §342.201(e) rate loan in which an administrative
fee was contracted for, charged, or received.
(4) An administrative fee is a prepaid charge and may
be contracted for, charged, or received in addition to the contractual
interest charge authorized by Texas Finance Code, §342.201(a),
(d), or (e).
(5) The administrative fee may be included in the cash
advance on which interest is computed under Texas Finance Code, §342.201(a)
or (e). The administrative fee may be included in the principal balance
on which interest is computed under Texas Finance Code, §342.201(d).
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| Source Note: The provisions of this §83.503 adopted to be effective November 9, 2006, 31 TexReg 8989; amended to be effective September 5, 2013, 38 TexReg 5704; amended to be effective July 10, 2014, 39 TexReg 5142; amended to be effective March 8, 2018, 43 TexReg 1257 |
