Tex. Fin. Code Section 306.005
Prepayment Premiums and Similar Amounts


With respect to a loan subject to this chapter, a creditor and an obligor may agree to a prepayment premium, make-whole premium, or similar fee or charge, whether payable in the event of voluntary prepayment, involuntary prepayment, acceleration of maturity, or other cause that involves premature termination of the loan, and those amounts do not constitute interest.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.12, eff. September 1, 2005.

Source: Section 306.005 — Prepayment Premiums and Similar Amounts, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­306.­htm#306.­005 (accessed May 11, 2024).

Accessed:
May 11, 2024

§ 306.005’s source at texas​.gov