SECTION 83.406. Effect of Revocation, Suspension, or Surrender of License

(a) Effect on existing contracts. Revocation, suspension, or surrender of a license does not affect a preexisting contract between a lender and a borrower, except that no more than 10% interest may be charged or received by the lender following the revocation, suspension, or surrender of its license. Alternatively, a lender whose license is revoked or suspended may transfer or sell its accounts to an authorized lender, which may continue to charge or receive the contracted rate of interest within the authority of Texas Finance Code, Chapter 342.

(b) Surrendering to avoid administrative action. A licensee may not surrender a license after an administrative action has been initiated without the written agreement of the OCCC.

Source Note: The provisions of this §83.406 adopted to be effective January 4, 2007, 31 TexReg 10772; amended to be effective November 4, 2010, 35 TexReg 9698