Finance Code › Title 4 › Chapter 342 › Subchapter G

Texas Finance Code § 342.305

Additional Interest for Default: Irregular Transaction

Consumer Loans · Interest and Other Charges on Secondary Mortgage Loans

A secondary mortgage loan that includes precomputed interest and that is an irregular transaction may provide for additional interest for default using the true daily earnings method for the period from the maturity date of an installment until the date the installment is paid. The rate of the additional interest may not exceed the maximum contract interest rate.

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

Official source
Legislative history

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.