Texas Finance Code 342.203 – Additional Interest for Default: Regular Transaction
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(a) A loan contract that includes precomputed interest or uses the scheduled installment earnings method and that is a regular 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.
(b) A loan contract that uses the scheduled installment earnings method and that is a regular 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.
Terms Used In Texas Finance Code 342.203
- Contract: A legal written agreement that becomes binding when signed.
(c) A loan contract that includes simple interest and that is a regular 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.
(d) The additional interest may not exceed five cents for each $1 of a scheduled installment.
(e) Interest under this section may not be collected more than once on the same installment.