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Texas Tax Code - TAX § 152.0472. Determination of Whether Loan is Factored, Assigned, or Transferred

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A seller is not considered to have factored, assigned, or transferred a loan under Section 152.047(g) if:

(1) a loan through a seller is pledged as security for the sale of bonds:

(A) to a qualified institutional buyer, as that term is defined by 17 C.F.R. Section 230.144A, that is not affiliated to the seller;

(B) to an institutional accredited investor, as that term is defined by 17 C.F.R. Section 230.501(a)(1), (2), (3), or (7), that is not affiliated to the seller;  or

(C) in a public offering;

(2) the right to receive payments and the risk of loss on nonpayment remains with the seller or an affiliated collection entity acting as agent of the seller;  and

(3) bondholders receive only interest and principal.

(b) Notwithstanding Subsection (a), the seller may elect to pay all unpaid tax imposed under this chapter on the total consideration.  A seller that makes this election is entitled to a credit or reimbursement for the taxes paid under this chapter on the remaining unpaid balance of the contract for which the seller has not received payment or has not otherwise collected the tax due.  The seller shall take the tax credit or reimbursement on the seller's seller-finance return.  The tax credit or reimbursement does not accrue interest.

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Cite this article: FindLaw.com - Texas Tax Code - TAX § 152.0472. Determination of Whether Loan is Factored, Assigned, or Transferred - last updated January 01, 2024 | https://codes.findlaw.com/tx/tax-code/tax-sect-152-0472/

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