Finance Code › Title 3 › Chapter 64 › Subchapter C

Texas Finance Code § 64.042

Application of Prepayments to Loan Installments

Loans and Investments · Loan Payments

Unless otherwise agreed in writing, an association shall apply:

(1) a prepayment of principal to the final installment of the obligation until the final installment is fully paid; and

(2) additional prepayments on installments in the inverse order of their maturity.

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

Official source
Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.