The following words and terms, when used in this subchapter,
have the following meanings, unless the context clearly indicates
otherwise:
(1) Amount financed--The total of payments minus the
finance charge.
(2) Annual percentage rate--Has the meaning described
by Regulation Z, 12 C.F.R. §1026.22, using a finance charge and
amount financed described by this section.
(3) Finance charge--The cost of a property tax loan
expressed as a dollar amount. The finance charge includes all interest
scheduled to be paid to the property tax lender, including prepaid
interest, and includes all closing costs to be retained by the property
tax lender or an affiliated business.
(A) The finance charge does not include amounts actually
paid to a taxing unit for taxes, penalties, interest, and collection
costs.
(B) In the case of a refinance of an existing property
tax loan, the finance charge does not include the amount paid to the
existing property tax lender to pay off the existing loan.
(C) A property tax lender may exclude recording expenses
actually paid to a governmental unit from the finance charge.
(D) A property tax lender may exclude closing costs
actually paid to third parties from the finance charge only if the
costs are bona fide, reasonable in amount, and paid to a person that
is not an affiliated business.
(4) Property tax lender--Has the meaning assigned by
Texas Finance Code, §351.002(1). Another name for a "property
tax lender" is a "transferee" as defined by Texas Tax Code, §32.06(a)(2),
and these terms may be used synonymously.
(5) Property tax loan--Has the meaning assigned by
Texas Finance Code, §351.002(2). Another name for a "property
tax loan" is a "tax lien transfer," and these terms may be used synonymously.
(6) Tax lien transfer--Has the meaning assigned by
Texas Finance Code, §351.002(2). Another name for a "tax lien
transfer" is a "property tax loan," and these terms may be used synonymously.
(7) Total of payments--The total amount the borrower
will have paid after making all scheduled payments, including payments
made at or before closing.
(8) Transferee--Has the meaning assigned by Texas Finance
Code, §351.002(1), and Texas Tax Code, §32.06(a)(2). Another
name for a "transferee" is a "property tax lender," and these terms
may be used synonymously.
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