By: Averitt S.B. No. 1450
A BILL TO BE ENTITLED
AN ACT
relating to judgment interest.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (c), Section 304.003, Finance Code,
is amended to read as follows:
(c) The postjudgment interest rate is:
(1) the prime rate as published by the Board of
Governors of the Federal Reserve System [Bank of New York] on the
date of computation;
(2) five percent a year if the prime rate as published
by the Board of Governors of the Federal Reserve System [Bank of New
York] described by Subdivision (1) is less than five percent; or
(3) 15 percent a year if the prime rate as published by
the Board of Governors of the Federal Reserve System [Bank of New
York] described by Subdivision (1) is more than 15 percent.
SECTION 2. This Act takes effect September 1, 2005.