Texas Statutes
Subchapter A. General Provisions
Section 346.002. Average Daily Balance

Sec. 346.002. AVERAGE DAILY BALANCE. (a) The average daily balance of a revolving credit account is computed by:
(1) adding all of the ending balances in the account during each day of a billing cycle; and
(2) dividing the total under Subdivision (1) by the number of days in the billing cycle.
(b) For purposes of Subsection (a), a day's ending balance is computed by:
(1) adding the previous day's ending balance and the amount of each loan, lease of goods, or purchase of goods or services posted to the account on the day for which the ending balance is being computed; and
(2) subtracting from the result under Subdivision (1) each credit or payment posted to the account on the day for which the ending balance is being computed.
(c) A day's ending balance may not include interest.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

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