SECTION 83.851. Duplication of Loans

(a) A licensee may have more than one loan contract under Texas Finance Code, Chapter 342 with the same borrower at the same time; however, in such an event the total interest charges assessed on the several cash advances must not exceed the total interest charges that could be legally imposed on one cash advance of an amount equal to the total of the several separate cash advances. The commissioner may require refunds of interest charges in excess of that which could be legally charged under Chapter 342. The commissioner will prescribe the method of determining any excess charges.

(b) Married applicants, who under the authority of Regulation B, 12 C.F.R. §1002.11(c), voluntarily apply for and maintain separate accounts, and who have the ability to repay the obligation, will not violate the prohibition on duplicate loans.

(c) No loan may be made by a licensee in one office to any borrower or to the spouse of the borrower when the borrower or spouse has a loan in another office operated by the same entity, affiliate, parent, subsidiary, or an entity under the same ownership, management, or control, whether partial or complete, when the total interest charges of the separate loans exceed the total interest charges that could be legally imposed on one cash advance. If loans are granted that violate this section, the rates must be adjusted to rates applicable to a single loan of equivalent amounts.

Source Note: The provisions of this §83.851 adopted to be effective November 9, 2006, 31 TexReg 9014; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 8142