(a) A loan the proceeds of which are used primarily to purchase an interest in a trust or other entity that has as its principal asset real property located outside the United States is:
- (1) not subject to Subtitle B; and
- (2) subject to the interest rate limitations of Chapter 303.
- (b) For the purpose of determining the interest rate on a loan to which this section applies, all interest contracted for, charged, or received shall be amortized, prorated, allocated, and spread over the full stated term of the loan.
- (c) This section does not affect application of a law of this state governing collateral that may be used to secure a loan to which this section applies.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.