Finance Code › Title 4 › Chapter 306 › Subchapter A

Texas Finance Code § 306.007

Guaranty, Assumption, Payment, or Other Agreement

Commercial Transactions · General Provisions

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.

Official text of the Texas Finance Code as published by the Texas Legislative Council.

Official source
Legislative history

Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.14, eff. September 1, 2005.