If the interest rate on a loan for property that is or is to be the residential homestead of the borrower is greater than 12 percent a year, a prepayment penalty may not be collected on the loan unless the penalty is required by an agency created by federal law.
Tex. Fin. Code § 302.102
PROHIBITION ON PREPAYMENT PENALTY
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.