Texas Finance Code

§ 305.004 — ADDITIONAL LIABILITY FOR MORE THAN TWICE AUTHORIZED RATE OF LEGAL INTEREST

FI § 305.004Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 305. PENALTIES AND REMEDIES · Art. A. CIVIL LIABILITY; CRIMINAL PENALTY

Statute text

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(a)In addition to the amount determined under Section 305.003, a creditor who charges and receives legal interest that is greater than twice the amount authorized by this subtitle is liable to the obligor for:

(1)the principal amount on which the interest is charged and received; and

(2)the interest and all other amounts charged and received.

(b)This section applies only to a transaction subject to this subtitle.

Legislative history

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.