Sec. 306.007. GUARANTY, ASSUMPTION, PAYMENT, OR OTHER AGREEMENT. With respect to a commercial loan, an obligor may be required to assume, pay, or provide a guaranty of another person's existing or future obligation as a condition of the obligor's own use, forbearance, or detention of money. The amount of the other person's obligation required to be assumed, paid, or guaranteed does not constitute interest with respect to any obligation of the obligor.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.14, eff. September 1, 2005.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Chapter 306 - Commercial Transactions
Subchapter A. General Provisions
Section 306.002. Interest; Application of Other Provisions of Subtitle
Section 306.003. Computation of Loan Terms
Section 306.004. Determining Rates of Interest by Spreading
Section 306.005. Prepayment Premiums and Similar Amounts
Section 306.006. Certain Authorized Charges on Commercial Loans
Section 306.007. Guaranty, Assumption, Payment, or Other Agreement