Category Archives: Texas

US District Court Holds Individual Guarantors Liable for Business Loan; Rejects Usury Challenge

An alternative small business lender provided a loan to a business located in Texas. The loan was guaranteed by two individuals.  The agreement contained a choice of law provision which provided that the transaction would be interpreted and governed by … Continue reading

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Court Finds Contract to Be Sale of Property Not Loan of Money, Usury Claim Rejected

A buyer purchased an apartment from a seller. The contract for deed required the buyer to make a down payment and 180 equal monthly payments of amortized principal and interest.  Following the last payment, title to the apartment would pass from … Continue reading

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Failure to Prove Damages Dooms Usury Claim

A recent decision in an adversarial bankruptcy proceeding demonstrates the necessity of proving each and every element of a claim of usury. In the case, the court refused to award relief–despite the rate being conceded as usurious–because the debtor had failed to plead all … Continue reading

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Sale of Membership Interest Not a Loan

Rahmani v. Banet, 2015 Tex. App. LEXIS 4676 (Tex. App. Fort Worth May 7, 2015) A business ownership transfer gone bad.  The plaintiff seller alleged that he had agreed to sell his 50% membership interest in the business to the … Continue reading

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