Sec. 557.004. PAYMENT OF INTEREST; RATE. A lender who fails to provide notice as required by Section 557.002 or 557.003 or to release insurance proceeds as required by Section 557.003 shall pay to the insured interest at the rate of 10 percent a year on the proceeds held by the lender.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Structure Texas Statutes
Title 5 - Protection of Consumer Interests
Subtitle C - Deceptive, Unfair, and Prohibited Practices
Chapter 557 - Insured Property Subject to Security Interest
Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property
Section 557.002. Notification by Lender to Insured Concerning Insurance Proceeds
Section 557.003. Lender's Release or Refusal to Release Insurance Proceeds
Section 557.004. Payment of Interest; Rate
Section 557.005. Accrual of Interest
Section 557.006. Interest Not Required on Insurance Proceeds Applied to Reduce Note