By: Averitt S.B. No. 1450
(In the Senate - Filed March 10, 2005; March 21, 2005, read
first time and referred to Committee on Jurisprudence;
April 28, 2005, reported favorably by the following vote: Yeas 4,
Nays 0; April 28, 2005, sent to printer.)
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.
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