Any reference to Section 50 in this interpretation refers to Article XVI, Texas Constitution, unless otherwise noted. These words and terms have the following meanings when used in this chapter, unless the context indicates otherwise:     
       (1) Balloon--An installment that is more than an amount equal to twice the average of all installments scheduled before that installment.      
       (2) Business day.                (A) As used in Section 50(a)(6)(M)(ii) and §153.13 of this title (relating to Preclosing Disclosures: Section 50(a)(6)(M)(ii)), "business day" means all calendar days except Sundays and the following legal public holidays: New Year's Day, Birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, Christmas Day, and any other legal public holiday specified in 5 U.S.C. § 6103 (a). When a holiday falls on a Saturday or Sunday, entities might observe the holiday on the preceding Friday or following Monday (e.g., when July 4 falls on a Saturday, entities might observe the holiday on Friday, July 3). For purposes of this subparagraph, these observed holidays (in the example, July 3) are business days.                 (B) As used in Section 50(f)(2)(D) and §153.45 of this title (relating to Refinance of an Equity Loan: Section 50(f)), "business day" means a day on which the lender's offices are open to the public for carrying on substantially all of its business functions. Activities that indicate that the lender is open for substantially all of its business functions include the availability of personnel to make loan disbursements, to open new accounts, and to handle loan inquiries. Activities that indicate that the lender is not open for substantially all of its business functions include a bank's having its customer-service windows open only for limited purposes such as deposits and withdrawals, bill paying, and related services.                 (C) As used in §153.25 of this title (relating to Right of Rescission: Section 50(a)(6)(Q)(viii)), "business day" has the meaning provided by Regulation Z, 12 C.F.R. §1026.2(a)(6) that applies for purposes of rescission.        
       (3) Closed or closing--The date when each owner and the spouse of each owner signs the equity loan agreement or the act of signing the equity loan agreement by each owner and the spouse of each owner.      
       (4) Consumer disclosure--The written notice contained in Section 50(g) that must be provided to the owner at least 12 days before the date the extension of credit is made.      
       (5) Cross-default provision--A provision in a loan agreement that puts the borrower in default if the borrower defaults on another obligation.      
       (6) Date the extension of credit is made--The date on which the closing of the equity loan occurs.      
       (7) E-Sign Act--The federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§7001-7006.      
       (8) Equity loan--An extension of credit as defined and authorized under the provisions of Section 50(a)(6).      
       (9) Equity loan agreement--The documents evidencing the agreement between the parties of an equity loan.      
       (10) Fair market value--The fair market value of the homestead as determined on the date that the loan is closed.      
       (11) Force-placed insurance--Insurance purchased by the lender on the homestead when required insurance on the homestead is not maintained in accordance with the equity loan agreement.      
       (12) Interest--As used in Section 50(a)(6)(E), "interest" means the amount determined by multiplying the loan principal by the interest rate over a period of time.      
       (13) Lockout provision--A provision in a loan agreement that prohibits a borrower from paying the loan early.      
       (14) Owner--A person who has the right to possess, use, and convey, individually or with the joinder of another person, all or part of the homestead.      
       (15) Preclosing disclosure--The written itemized disclosure required by Section 50(a)(6)(M)(ii).      
       (16) Two percent limitation--The limitation on fees in Section 50(a)(6)(E).      
       (17) UETA--The Texas Uniform Electronic Transactions Act, Texas Business & Commerce Code, Chapter 322.      
     Source Note:        The provisions of this §153.1 adopted to be effective January 8, 2004, 29 TexReg 84; amended to be effective January 1, 2015, 39 TexReg 10407; amended to be effective March 29, 2018, 43 TexReg 1839; amended to be effective January 6, 2022, 46 TexReg 9240; amended to be effective July 14, 2022, 47 TexReg 3969