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.  Section 304.003(c), 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 [Federal Reserve 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 [Federal 
Reserve 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 [Federal 
Reserve Bank of New York] described by Subdivision (1) is more than 
15 percent.
	SECTION 2.  This Act takes effect September 1, 2005.