CREDITORS' RIGHTS
IN TEXAS
SECOND EDITION
Volume 2
Eugene A. Cook
Editor in Chief
Austin
1981
Contents
Volume 1
Letter from the President of the State Bar of Texas
Preface to the Second Edition
/
/
xi
xiii
1 Ethical and Practical Considerations in
Handling Creditors' Claims / 1
Daniel ]. Goldberg
2
Seller's Rights and Remedies Under Article 2 of the
Uniform Commercial Code / 19
Richard M. Alderman
3
Commercial Paper Under Article 3 of
the Uniform Commercial Code / 101
John E. Krahmer
4
Bank Deposits and Collections Under Article 4 of
the Uniform Commercial Code / 179
John E. Krahmer
5 Bulk Transfers / 205
Lennart V. Larson
6
Secured Transactions
Dellas W. Lee
7
Prejudgment Remedies
Eugene A. Cook
/
233
/
343
8 Liability of Separate and Community Property
for Obligations of Spouses to Strangers / 433
W. ]. Williamson
9
Bonds and Liens on Public and Private
Construction Projects / 457
Tom D. Matthews, Jr.
vii
CONTENTS
10
Priorities Among Lien Creditors
Charles O. Galvin
11
Exempt Property / 531
Philip I. Palmer, Jr.
12
13
Statutes of Limitations
Vernon O. Teofan
Holt W. Guysi
/
/
511
551
Contents
23
Texas Consumer Credit Code
J. Scott Sheehan
Joe P. Smyer
24
Tax Problems in Handling Affairs of Debtors
and Creditors / 1165
Robert A. DeWitt
Statutes and Rules Cited
Assignments for the Benefit of Creditors,
Compositions, and Arbitration / 573
Seymour Lieberman
Cases Cited
Subject Index
14
Creditors' Bills To Discover and Reach Property
Firmin A. Hickey, Jr.
15
Judgment Liens /
Robert B. Cox
James E. Nelson
/
/
/
/
1003
1195
1237
/
1277
611
641
Volume 2
16
Foreign Judgments / 663
Stanton B. Pemberton
17
Federal and State Debt-Collection Statutes
Charles N . Curry
James D. Matthews
18
Suits on Notes, Accounts, and Special Contracts
Ben L. Aderholt
19
Texas Deceptive Trade Practices Act
Philip K. Maxwell
20
Usury / 837
Robert E. Wood
21
Truth in Lending / 883
P. Keith O'Gorman
22
Equal Credit Opportunity Act and Fair Credit
Reporting Act / 949
Dan L. N icewander
/
/
687
/
705
757
viii
ix
20
Usury
ROBERT
E.
WOOD
[Important: Check current statutory language for effect of 1981 legislation, especially H.B. 1228, which could not be reflected in this material.]
I. Introduction
II. Constitutional and Statutory Scheme
III. What Constitutes Usury
IV. Penalties, Procedure, and Purging
V. Bibliography
§§ 20.01-.02
§§ 20.11-.13
§§ 20.21-.25
§§ 20.31-.39
§ 20.51
I. Introduction
§ 20.01 Definition
§ 20.02 Scope of Chapter
II. Constitutional and Statutory Scheme
§ 20.11 Constitutional Provisions
§ 20.12 Texas Statutory Provisions
(a) General Considerations
(b) Exceptions
§ 20.13 Other Statutory Provisions
III. What Constitutes Usury
§ 20.21 General Considerations
§ 20.22 Loan or Forbearance
(a) General Considerations
(b) Sale or Exchange of Chose in Action
(c) Discount of Negotiable Instrument
§ 20.23 Obligation To Repay
§ 20.24 Interest in Excess of Legal Maximum
(a) General Considerations
ROBERT E. WOOD-Professor of law, Texas Tech University, Lubbock, Texas. Admitted to bar,
Florida, 1968; Texas, 1969. Education: Texas Tech University (B.A., 1965); Vanderbilt University (J.D., 1968). Editor, The Texas Bank Lawyer, 1977 to present. Chairman, Banking
Laws Committee of the Corporation, Banking and Business Law Section, State Bar of Texas,
1980-81.
837
USURY
(b) What Constitutes Interest
(1) Service Fees
(2) Brokerage Fees
(3) Commitment Fees
(4) Prepayment Penalties
(5) Charges on Default
(6) Collateral Advantage
(i) Compensq.ting Balances
(ii) Assumptions of Third-Party Loans
(iii) Insurance
(c) Applicable Maximum Rate
(1) The Corporate Exception
(2) Real Estate Financing
(3) Large Transaction Exception
(4) Oil and Gas Exploration and Development
(5) Residential Real Estate Exception
(6) Other Variations in Rate
(d) Matters Affecting the Stated Rate
(1) Front-End Interest, Interest in Advance, and Spreading
(2) Deduction of Interest at Inception of Loan
(3) Interest Charged From Before Date of Note
(4) Acceleration of Maturity
§ 20.25 Intent
IV. Penalties, Procedure, and Purging
§ 20.31 Penalties for Violations of the Usury Laws
(a) Usury Penalties in General
(b) Computation of Penalty
§ 20.32 Jurisdiction
§ 20.33 Venue
§ 20.34 Plaintiff
(a) Parties Who Can Assert Usury
(b) Necessary Parties
§ 20.35 Defendant
(a) Parties Against Whom Usury May Be Asserted
(b) Holder in Due Course
§ 20.36 Pleading and Proof
§ 20.37 Defenses
(a) General Considerations
(b) Bona Fide Error
(c) Limitations
§ 20.38 Applicable Law
(a) Effect of Change in Statute
(b) Conflict of Laws
§ 20.39 Purging of Usurious Contract
V. Bibliography
§ 20.51 Helpful References
838