Tex. Codes » Finance Code · TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · SUBTITLE A. INTEREST · CHAPTER 303. OPTIONAL RATE CEILINGS
Texas Codes

Tex. Fin. Code § 303.009 (2026)

Maximum And Minimum Weekly, Monthly, Quarterly, Or Annualized Ceiling

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Sec. 303.009. MAXIMUM AND MINIMUM WEEKLY, MONTHLY, QUARTERLY, OR ANNUALIZED CEILING. (a) If the rate computed for the weekly, monthly, quarterly, or annualized ceiling is less than 18 percent a year, the ceiling is 18 percent a year.

(b) Except as provided by Subsection (c), if the rate computed for the weekly, monthly, quarterly, or annualized ceiling is more than 24 percent a year, the ceiling is 24 percent a year.

(c) For a contract made, extended, or renewed under which credit is extended for a business, commercial, investment, or similar purpose, the limitation on the ceilings determined by those computations is 28 percent a year.

(d) For an open-end account credit agreement that provides for credit card transactions on which a merchant discount is not imposed or received by the creditor or a retail charge agreement under Chapter 345 without a merchant discount, the ceiling is 21 percent a year.

(e) Repealed by Acts 1999, 76th Leg., ch. 1348, Sec. 5, eff. Sept. 1, 1999.

(f) In this chapter, "weekly ceiling," "monthly ceiling," "quarterly ceiling," or "annualized ceiling" refers to that ceiling as determined after the application of this section.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999. Amended by Acts 1999, 76th Leg., ch. 1348, Sec. 5, eff. Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.02, eff. September 1, 2005.

Acts 2011, 82nd Leg., R.S., Ch. 1182 (H.B. 3453), Sec. 3, eff. September 1, 2011.

Notes of Decisions
Cited in 24 cases (7 in the last 5 years), 2003–2026 · leading case: All Seasons Window & Door Mfg., Inc. v. Red Dot Corp., 181 S.W.3d 490 (Tex. App.—Texarkana 2005).
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All Seasons Window & Door Mfg., Inc. v. Red Dot Corp., 181 S.W.3d 490 (Tex. App.—Texarkana 2005). · cites it 2× “See Tex. Fin.Code Ann. § 303.001 (Vernon Supp.”
Threlkeld v. Urech, 329 S.W.3d 84 (Tex. App.—Dallas 2011). · cites it 4× “See Tex. Fin.Code Ann. § 303.009 (West 2006).”
Bair Chase Prop. Co. v. S & K Dev. Co., 260 S.W.3d 133 (Tex. App.—Austin 2008). · cites it 2× “Furthermore, because the finance code imposes a minimum rate ceiling of 18%, the maximum rate allowed by law would not have fallen below 18% through the duration of Bair Chase’s corrected payoff sheet, which details amounts owed through February 8, 2007.”
In re Perry, 425 B.R. 323 (Bankr. S.D. Tex. 2010). · cites it 2× “Tex. Fin.Code § 303.009(a) provides that ”[i]f the rate computed for the weekly, monthly, quarterly, or annualized ceiling is less than 18 percent a year, the ceiling is 18 percent a year.”
Samson Expl., LLC v. T. S. Reed Props., Inc., 521 S.W.3d 26 (Tex. App.—Beaumont 2015). “See Tex. Fin. Code Ann. § 303.009 (West Supp.”
Fleetwood Servs., LLC v. Complete Bus. Solutions Grp., Inc., 374 F. Supp. 3d 361 (E.D. Pa. 2019). “" See Tex. Fin. Code § 303.009(c). The Texas Financial Code also permits private causes of action for usury in commercial transactions.”
Law Off. of Oscar C. Gonzalez, Inc. v. Isabel Sloan, 447 S.W.3d 98 (Tex. App.—San Antonio 2014). “” See Tex. Fin.Code Ann. §§ 303.009, 304.002 (West Supp.”
Patten v. Maryland Bank, N.A., 126 S.W.3d 532 (Tex. App.—Houston [1st Dist.] 2003). · cites it 2× “Texas Finance Code section 303.009(d) states: For an open-end account credit agreement that provides for credit card transactions on which a merchant discount is not imposed or received by the creditor, if the rate computed for the weekly ceiling, monthly ceiling, quarterly…”
Env't Processing Sys. v. Larry P. Horner, No. 09-16-00197-CV (Tex. App.—Beaumont Feb. 15, 2018). · cites it 4× “See Tex. Fin. Code Ann. § 303.009 (c) (West 2016) (providing a 28% ceiling for credit extended for a business, commercial, investment, or similar purpose).”
Robert Penta v. Easy Street Capital, LLC, No. 03-21-00606-CV (Tex. App.—Austin Oct. 31, 2023). · cites it 2× “” 7 Matured, unpaid principal and interest bears interest “from maturity until paid, at the Maximum Rate” which was 18%—the statutory ceiling set by Texas Finance Code § 303.009. Penta did not make the payment due on March 1, 2019.”
Am. Pearl Grp., L.L.C. v. Nat'l Payment Sys., L.L.C., 715 S.W.3d 383 (Tex. 2025). · cites it 2× “TEX. FIN. CODE § 303.009(c). But a loan is not usurious just because the interest rate exceeds 28% in any particular year.”
Denali Constr. Servs., LLC. v. Cloudfund, LLC, No. 24-03083 (Bankr. N.D. Tex. Mar. 20, 2026). · cites it 2× “Tex. Fin. Code §§ 303.009(c), 306.002(a).”
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Tex. Fin. Code § 303.009(a): 8 cases
Bair Chase Prop. Co. v. S & K Dev. Co., 260 S.W.3d 133 (Tex. App.—Austin 2008). “Furthermore, because the finance code imposes a minimum rate ceiling of 18%, the maximum rate allowed by law would not have fallen below 18% through the duration of Bair Chase’s corrected payoff sheet, which details amounts owed through February 8, 2007.”
In re Perry, 425 B.R. 323 (Bankr. S.D. Tex. 2010). “Tex. Fin.Code § 303.009(a) provides that ”[i]f the rate computed for the weekly, monthly, quarterly, or annualized ceiling is less than 18 percent a year, the ceiling is 18 percent a year.”
Threlkeld v. Urech, 329 S.W.3d 84 (Tex. App.—Dallas 2011). “See Tex. Fin.Code Ann. § 303.009 (West 2006).”
Wells Fargo Bank Nat'l Ass'n v. Benamou, No. 3:20-cv-00081 (N.D. Tex. Aug. 3, 2021).
Petty Bus. Enter., L.P. v. Chesapeake Expl., L.L.C., No. 20-03433 (Bankr. S.D. Tex. Sept. 14, 2021).
Tex. Fin. Code § 303.009(c): 5 cases
Fleetwood Servs., LLC v. Complete Bus. Solutions Grp., Inc., 374 F. Supp. 3d 361 (E.D. Pa. 2019). “" See Tex. Fin. Code § 303.009(c). The Texas Financial Code also permits private causes of action for usury in commercial transactions.”
Am. Pearl Grp., L.L.C. v. Nat'l Payment Sys., L.L.C., 715 S.W.3d 383 (Tex. 2025). “TEX. FIN. CODE § 303.009(c). But a loan is not usurious just because the interest rate exceeds 28% in any particular year.”
Denali Constr. Servs., LLC. v. Cloudfund, LLC, No. 24-03083 (Bankr. N.D. Tex. Mar. 20, 2026). “Tex. Fin. Code §§ 303.009(c), 306.002(a).”
Am. Pearl Grp., LLC v. Nat'l Payment Sys., LLC, No. 3:22-cv-00693 (N.D. Tex. Dec. 20, 2022).
DArbonne Bend LLC v. Pierce Partners III, LLC, No. 4:20-cv-00589 (S.D. Tex. Nov. 4, 2020).
Tex. Fin. Code § 303.009(d): 1 case
Patten v. Maryland Bank, N.A., 126 S.W.3d 532 (Tex. App.—Houston [1st Dist.] 2003). “Texas Finance Code section 303.009(d) states: For an open-end account credit agreement that provides for credit card transactions on which a merchant discount is not imposed or received by the creditor, if the rate computed for the weekly ceiling, monthly ceiling, quarterly…”
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