Texas Finance Code 346.003 – Revolving Credit Accounts
(a) A revolving credit account is an open-end account:
(1) that is established by a creditor for a customer under a written agreement between the creditor and the customer;
(2) that the customer accepts by using the account; and
(3) under which:
(A) the unpaid balance of and interest on the extensions of credit are debited to the account;
(B) interest is not precomputed but may be computed on the balances of the account outstanding from time to time;
(C) the customer may defer payment of any part of the balance of the account; and
(D) the customer may obtain from the creditor one or more extensions of credit as described by Subsection (b) or (c).
(b) A revolving loan account is a revolving credit account under which a customer may obtain a loan from a creditor.
Terms Used In Texas Finance Code 346.003
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A revolving triparty account is a revolving credit account under which:
(1) a customer may use a credit card to:
(A) obtain a loan from a creditor, with the advance made by the creditor or a person participating with the creditor;
(B) lease goods from a person participating with the creditor; or
(C) purchase goods or services from a person participating with the creditor;
(2) the creditor is obligated to pay the participating person; and
(3) the customer is obligated to pay the creditor the amount of the loan or cost of the lease or purchase.
(d) Interest may be computed on the balance of the account from time to time.