Section 89.502 - DefinitionsThe 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, RSA 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, § RSA 351.002(1). Another name for a "property tax lender" is a "transferee" as defined by Texas Tax Code, § RSA 32.06(a)(2), and these terms may be used synonymously.(5) Property tax loan--Has the meaning assigned by Texas Finance Code, § RSA 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, § RSA 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, § RSA 351.002(1), and Texas Tax Code, § RSA 32.06(a)(2). Another name for a "transferee" is a "property tax lender," and these terms may be used synonymously.7 Tex. Admin. Code § 89.502
The provisions of this §89.502 adopted to be effective January 3, 2008, 32 TexReg 9944; Amended by Texas Register, Volume 42, Number 44, November 3, 2017, TexReg 6139, eff. 11/9/2017