2005 Texas Finance Code CHAPTER 339. MISCELLANEOUS PROVISIONS RELATING TO INTEREST

FINANCE CODE

CHAPTER 339. MISCELLANEOUS PROVISIONS RELATING TO INTEREST


	§ 339.001. IMPOSITION OF SURCHARGE FOR USE OF CREDIT 
CARD.  (a) In a sale of goods or services, a seller may not impose a 
surcharge on a buyer who uses a credit card for an extension of 
credit instead of cash, a check, or a similar means of payment.
	(b)  This section does not apply to a state agency, county, 
local governmental entity, or other governmental entity that 
accepts a credit card for the payment of fees, taxes, or other 
charges.
	(c)  The Finance Commission of Texas shall have exclusive 
jurisdiction to enforce and adopt rules relating to this section.  
Rules adopted pursuant to this section shall be consistent with 
federal laws and regulations governing credit card transactions 
described by this section.  This section does not create a cause of 
action against an individual for violation of this section.

Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1, 
1999;  Acts 2005, 79th Leg., ch. 1018, § 2.15, eff. Sept. 1, 
2005.


	§ 339.002. BILLING CYCLE INTEREST LIMITATION ON OPEN-END 
ACCOUNT WITHOUT MERCHANT DISCOUNT.  (a) This section applies to an 
open-end account agreement that provides for credit card 
transactions:
		(1)  in which the creditor relies on one of the ceilings 
authorized by Chapter 303 for the rate of interest;  and
		(2)  in connection with which the creditor does not 
impose or receive a merchant discount.
	(b)  Interest or time price differential may not be charged 
for a billing cycle of an open-end account credit agreement if:
		(1)  the total amount of the obligor's payments during 
the cycle equal or exceed the balance owed under the agreement at 
the end of the preceding billing cycle;  or
		(2)  an amount is not owed under the agreement at the 
end of the preceding billing cycle.

Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1, 
1999.  


	§ 339.003. SALE OF OPEN-END ACCOUNT WITHOUT MERCHANT 
DISCOUNT.  A seller or lessor may sell an open-end account credit 
agreement described by Section 339.002(a) or any balance under that 
agreement to a purchaser who purchases a substantial part of the 
seller's or lessor's open-end account credit agreements or balances 
under those agreements in accordance with Subchapter G, Chapter 
345.  A charge, fee, or discount on that sale:
		(1)  is not a merchant discount;                                              
		(2)  does not disqualify the open-end account credit 
agreement or a balance under that agreement from being subject to 
Chapter 303 or from coverage under this section;  and
		(3)  does not subject the account to the limitations 
provided by Section 303.006(c).

Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1, 
1999.  


	§ 339.004. APPLICATION OF LICENSING REQUIREMENT AND 
SUBTITLE B TO CREDIT UNION OR EMPLOYEE BENEFIT PLAN.  (a) A credit 
union is not subject to Subtitle B  and is not required to obtain a 
license under this title.
	(b)  With respect to a loan that an employee benefit plan 
that is subject to Title I of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. Sections 1001-1114) makes to a 
participant in the plan or a participant's beneficiary, the plan is 
not subject to Subtitle B and is not required to obtain a license 
under this title.

Amended by Acts 1999, 76th Leg., ch. 62, § 7.18(a), eff. Sept. 1, 
1999.  


	§ 339.005. APPLICABILITY OF CERTAIN FEDERAL LAW.  This 
title does not override or restrict the applicability of 12 U.S.C. 
Section 1735f-7a.

Added by Acts 2001, 77th Leg., ch. 916, § 9, eff. Sept. 1, 2001.