Tex. Ins. Code Section 557.005
Accrual of Interest

(a)

If a lender fails to provide notice as required by Section 557.002 (Notification by Lender to Insured Concerning Insurance Proceeds) or 557.003 (Lender’s Release or Refusal to Release Insurance Proceeds), interest begins to accrue on the date the lender received the insurance proceeds.

(b)

If a lender fails to release insurance proceeds as required by Section 557.003 (Lender’s Release or Refusal to Release Insurance Proceeds), interest begins to accrue on the date the lender receives sufficient evidence of the insured’s compliance with the requirements specified by the lender under Section 557.002 (Notification by Lender to Insured Concerning Insurance Proceeds) or 557.003 (Lender’s Release or Refusal to Release Insurance Proceeds) for release of the proceeds.

(c)

Interest stops accruing on the date the lender complies with Section 557.002 (Notification by Lender to Insured Concerning Insurance Proceeds) or 557.003 (Lender’s Release or Refusal to Release Insurance Proceeds), as applicable.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Source: Section 557.005 — Accrual of Interest, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­557.­htm#557.­005 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 557.005’s source at texas​.gov