On loans subject to 12 U.S.C. Sections 1735f-7 and 1735f-7a, as amended, any late charges assessed are interest that is included in computing the amount or rate of interest on the loan and, therefore, covered by the federal preemption of state interest rate limitations.
Tex. Fin. Code § 302.103
EFFECT OF FEDERAL PREEMPTION ON LATE CHARGES
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.