SECTION 89.101. Purpose, Scope, and Applicability

(a) Purpose. The purpose of this chapter is to assist in the administration and enforcement of Texas Finance Code, Chapter 351, Property Tax Lenders, known as the "Property Tax Lender License Act" (Acts 2007, 80th Leg., ch. 1220).

(b) Scope. This chapter applies to all persons engaged in the business of making, transacting, or negotiating property tax loans subject to Texas Finance Code, Chapter 351, Property Tax Lenders, known as the "Property Tax Lender License Act." As such, this chapter only applies to lenders in the business of making, transacting or negotiating property tax loans that:

(1) are secured by a special lien against property transferred from a taxing unit to the property tax lender; and

(2) may be further secured by the lien or security interest created by a deed of trust, security deed, or other security instrument.

(c) License required for authorized property tax lending. Texas Finance Code, Chapter 351, authorizes a property tax lender to engage in the business of making, transacting, or negotiating property tax loans, as provided in subsection (b) of this section. Texas Finance Code, §351.051 (Acts 2007, 80th Leg., ch. 1220) and this chapter require that property tax lenders hold a license in order to conduct authorized property tax lending under Chapter 351.

(d) Exemption from other licensing limited to authorized property tax lending. Texas Finance Code, §351.051(d) (Acts 2007, 80th Leg., ch. 1220) provides that a property tax lender licensed under Chapter 351 is not required to be licensed under Chapter 156, Chapter 342, or any other provision of the Finance Code in order to conduct authorized property tax lending under Chapter 351. If a person engages in regulated activity otherwise subject to Chapter 156, Chapter 342, any other chapter of the Finance Code, or other law, the other chapter or law pertaining to the type of regulated activity conducted would apply independently of Chapter 351.

(e) License not required. National banks and federally-chartered thrifts and credit unions, wherever located, and federally-insured state banks, state thrifts and state credit unions with offices located outside of Texas may make property tax loans to Texas residents without obtaining a property tax lender license from the OCCC under Texas Finance Code, §351.051 et seq.

Source Note: The provisions of this §89.101 adopted to be effective November 8, 2007, 32 TexReg 7917