Tex. Finance Code § 342.206
ADDITIONAL INTEREST FOR DEFAULT: IRREGULAR TRANSACTION
Texas · Texas Finance Code · Status: effective
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- Citation
- Tex. Finance Code § 342.206, ADDITIONAL INTEREST FOR DEFAULT: IRREGULAR TRANSACTION, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/647245
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Full text
(a) A loan contract 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.
(b) A loan contract that includes simple interest and that is an irregular transaction may provide for additional interest for default if any part of an installment remains unpaid after the 10th day after the date on which the installment is due, including Sundays and holidays. The additional interest may not exceed five cents for each $1 of a scheduled installment. Interest under this subsection may not be collected more than once on the same installment.