Texas Finance Code 304.002 – Judgment Interest Rate: Interest Rate or Time Price Differential in Contract
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Terms Used In Texas Finance Code 304.002
- Contract: A legal written agreement that becomes binding when signed.
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
- Year: means 12 consecutive months. See Texas Government Code 311.005
A money judgment of a court of this state on a contract that provides for interest or time price differential earns postjudgment interest at a rate equal to the lesser of:
(1) the rate specified in the contract, which may be a variable rate; or
(2) 18 percent a year.