Texas § IN.1107.055 - INTEREST RATE
Full text of Texas The Texas Constitution § IN.1107.055 — INTEREST RATE, with citation guidance and answers to common questions.
§ IN.1107.055. INTEREST RATE
INTEREST RATE. The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which must be specified in the contract if the interest rate will be redetermined: (1) the five-year Constant Maturity Treasury Rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no longer than 15 months prior to the contract issue date or redetermination date under Subdivision (4); (2) reduced by 125 basis points; (3) where the resulting interest rate is not less than 0.15 percent; and (4) the interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis, and period, if any, shall be stated in the contract. As used in this section, basis is the date, or average over a specified period, which produces the five-year Constant Maturity Treasury Rate to be used at each redetermination date. Added by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003. Amended by: Acts 2021, 87th Leg., R.S., Ch. 262 (H.B. 1777 ), Sec. 1, eff. September 1, 2021.
Frequently Asked Questions About Texas § IN.1107.055
What does The Texas Constitution § IN.1107.055 cover?
Section IN.1107.055 ("INTEREST RATE") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.1107.055?
A common citation format is "The Texas Constitution § IN.1107.055" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.1107.055 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.