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.
Tex. Fin. Code § 306.005
PREPAYMENT PREMIUMS AND SIMILAR AMOUNTS
Applied in 3 court decisions — leading case Achee Holdings, LLC v. Silver Hill Financial, LLC (2009)
Most recently applied in 411 F. App'x 703 - AMK 2000-A, L.L.C. v. Maliek (February 2011)
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.