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Keywords:

texas,usury,lender,lending,asset,asset-based,property,finance,hard money,article

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A lender who contracts for or receives interest in excess of the statutory maximims commits "usury" It is a crime that carries small criminal penalties, but more importantly it can void the loan documents, and the lender will have to forfeit any interest he has in assets securing the loan. It is a common misconception that usury laws apply only to consumer transactions. In Texas, and elsewhere, they apply to commercial transactions also. This is the best articles out about these laws as they affect commercial lenders in Texas. Very good article by Jeffrey D. Dunn. Must read. PDF format. Three pages.