Any reference to Section 50 in this interpretation refers to
Article XVI, Texas Constitution, unless otherwise noted. These words
and terms have the following meanings when used in this chapter, unless
the context indicates otherwise:
(1) Balloon--An installment that is more than an amount
equal to twice the average of all installments scheduled before that
installment.
(2) Business day.
(A) As used in Section 50(a)(6)(M)(ii) and §153.13
of this title (relating to Preclosing Disclosures: Section 50(a)(6)(M)(ii)),
"business day" means all calendar days except Sundays and the following
legal public holidays: New Year's Day, Birthday of Martin Luther King,
Jr., Washington's Birthday, Memorial Day, Juneteenth National Independence
Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving
Day, Christmas Day, and any other legal public holiday specified in
5 U.S.C. § 6103 (a). When a holiday falls on a Saturday or Sunday,
entities might observe the holiday on the preceding Friday or following
Monday (e.g., when July 4 falls on a Saturday, entities might observe
the holiday on Friday, July 3). For purposes of this subparagraph,
these observed holidays (in the example, July 3) are business days.
(B) As used in Section 50(f)(2)(D) and §153.45
of this title (relating to Refinance of an Equity Loan: Section 50(f)),
"business day" means a day on which the lender's offices are open
to the public for carrying on substantially all of its business functions.
Activities that indicate that the lender is open for substantially
all of its business functions include the availability of personnel
to make loan disbursements, to open new accounts, and to handle loan
inquiries. Activities that indicate that the lender is not open for
substantially all of its business functions include a bank's having
its customer-service windows open only for limited purposes such as
deposits and withdrawals, bill paying, and related services.
(C) As used in §153.25 of this title (relating
to Right of Rescission: Section 50(a)(6)(Q)(viii)), "business day"
has the meaning provided by Regulation Z, 12 C.F.R. §1026.2(a)(6)
that applies for purposes of rescission.
(3) Closed or closing--The date when each owner and
the spouse of each owner signs the equity loan agreement or the act
of signing the equity loan agreement by each owner and the spouse
of each owner.
(4) Consumer disclosure--The written notice contained
in Section 50(g) that must be provided to the owner at least 12 days
before the date the extension of credit is made.
(5) Cross-default provision--A provision in a loan
agreement that puts the borrower in default if the borrower defaults
on another obligation.
(6) Date the extension of credit is made--The date
on which the closing of the equity loan occurs.
(7) E-Sign Act--The federal Electronic Signatures in
Global and National Commerce Act, 15 U.S.C. §§7001-7006.
(8) Equity loan--An extension of credit as defined
and authorized under the provisions of Section 50(a)(6).
(9) Equity loan agreement--The documents evidencing
the agreement between the parties of an equity loan.
(10) Fair market value--The fair market value of the
homestead as determined on the date that the loan is closed.
(11) Force-placed insurance--Insurance purchased by
the lender on the homestead when required insurance on the homestead
is not maintained in accordance with the equity loan agreement.
(12) Interest--As used in Section 50(a)(6)(E), "interest"
means the amount determined by multiplying the loan principal by the
interest rate over a period of time.
(13) Lockout provision--A provision in a loan agreement
that prohibits a borrower from paying the loan early.
(14) Owner--A person who has the right to possess,
use, and convey, individually or with the joinder of another person,
all or part of the homestead.
(15) Preclosing disclosure--The written itemized disclosure
required by Section 50(a)(6)(M)(ii).
(16) Two percent limitation--The limitation on fees
in Section 50(a)(6)(E).
(17) UETA--The Texas Uniform Electronic Transactions
Act, Texas Business & Commerce Code, Chapter 322.
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| Source Note: The provisions of this §153.1 adopted to be effective January 8, 2004, 29 TexReg 84; amended to be effective January 1, 2015, 39 TexReg 10407; amended to be effective March 29, 2018, 43 TexReg 1839; amended to be effective January 6, 2022, 46 TexReg 9240; amended to be effective July 14, 2022, 47 TexReg 3969 |
