Tex. Gov't Code § 2251.025 · Subchapter B. PAYMENTS AND INTEREST
INTEREST ON OVERDUE PAYMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A payment begins to accrue interest on the date the payment becomes overdue.
(b) The rate of interest that accrues on an overdue payment is the rate in effect on September 1 of the fiscal year in which the payment becomes overdue. The rate in effect on September 1 is equal to the sum of:
(1) one percent; and
(2) the prime rate as published in the Wall Street Journal on the first day of July of the preceding fiscal year that does not fall on a Saturday or Sunday.
(c) Interest on an overdue payment stops accruing on the date the governmental entity or vendor mails or electronically transmits the payment. In this subsection, "governmental entity" does not include a state agency.
(d) This subsection applies only if the comptroller is not responsible for issuing a warrant or initiating an electronic funds transfer to pay the principal amount owed by a state agency to a vendor. The accrual of interest on an overdue payment to the vendor:
(1) stops on the date the agency mails or electronically transmits the payment; and
(2) is not suspended during any period that a payment law prohibits the agency from paying the vendor.
(e) This subsection applies only if the comptroller is responsible for issuing a warrant or initiating an electronic funds transfer to pay the principal amount owed by a state agency to a vendor. Interest on an overdue payment to the vendor:
(1) stops accruing on its distribution date; and
(2) does not stop accruing during any period that a payment law prohibits the comptroller from issuing the warrant or initiating the transfer.
Notes and commentary — not statutory text
History
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 64, 65, 66, 67(a), eff. June 15, 2001; Acts 2003, 78th Leg., ch. 1310, Sec. 61, eff. July 1, 2004.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2251.htm
- Text hash
- sha256 93386cdfdb4195aa311da5a5788a66e715462b7a18f9aba58175ee1ede17c049
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 5 provisions
Provisions in this library whose text cites Tex. Gov't Code § 2251.025. Each shows the citation as that text prints it.
Business & Commerce Code
Special District Local Laws Code
- Tex. Spec. Dist. Local Laws Code § 8813.106INTEREST AND PENALTIES.Printed as Section 2251.025, Government Code
- Tex. Spec. Dist. Local Laws Code § 8815.106INTEREST AND PENALTIES.Printed as Section 2251.025, Government Code
- Tex. Spec. Dist. Local Laws Code § 8878.105INTEREST AND PENALTIES.Printed as Section 2251.025, Government Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.