News & Analysis as of

Borrowers Texas

Eversheds Sutherland (US) LLP

Texas Supreme Court announces new method of calculating maximum interest for commercial transactions

On May 23, 2025, the Texas Supreme Court redetermined the method for calculating the maximum allowable interest for commercial loans under Chapter 306 of the Texas Finance Code. The decision is a radical change in how...more

Sheppard Mullin Richter & Hampton LLP

Texas Passes Legislation to Regulate Sales-Based Financing

On June 20, Texas Governor Greg Abbot signed into law HB 700, adding Chapter 398 to the Texas Finance Code. Effective September 1, the statute establishes a regulatory framework for commercial sales-based financing and...more

Troutman Pepper Locke

Texas Enacts New Commercial Sales-Based Financing Bill Severely Restricting Automatic Debits

Troutman Pepper Locke on

On June 20, the Texas Legislature passed H.B. 700, which introduces several new regulatory requirements for providers and brokers of commercial sales-based financing operating within the state. The law applies to merchant...more

Sheppard Mullin Richter & Hampton LLP

Texas Supreme Court Issues New Interpretation of Texas Usury Law

On May 23, the Texas Supreme Court issued an opinion holding that in determining whether a commercial loan is usurious under Texas state law, the “actuarial method” must be employed. This requires the applicable amount of...more

Orrick, Herrington & Sutcliffe LLP

Texas Supreme Court answers Fifth Circuit’s question on loans in ruling

On May 23, the Supreme Court of Texas ruled that the maximum permissible interest on a loan must be calculated using the declining principal balance rather than the initial total principal amount. This decision was in...more

Katten Muchin Rosenman LLP

Maximum Interest Must Be Calculated Using the Actuarial Method Resulting in Lower Interest Charges as Principal Balance Declines

Commercial lenders in Texas should be made aware of the Texas Supreme Court’s new decision in American Pearl Group, LLC v. National Payment Systems, LLC, No. 24-0758. In that case, the Court clarified the “actuarial method”...more

Proskauer Rose LLP

The End of Non-Pro Rata Uptiers? Fifth Circuit Rules that Serta Exchange was Not an “Open Market Purchase”

Proskauer Rose LLP on

The United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) ruled on December 31, 2024 that Serta Simmons Bedding’s (“SSB”) 2020 uptier exchange included a transaction that, contrary to the assertions of...more

McGlinchey Stafford

Lender FAQs: Understanding Texas Home Equity Loan Modifications

McGlinchey Stafford on

As interest rates decline in 2024, lenders who make home loans to Texas residents are seeing an uptick in loan modification requests. Although a “mod” for a conventional loan is straightforward, there are – as always – unique...more

Fox Rothschild LLP

Sue-Happy Bill Targeting Student Loan Servicers Introduced In Texas Senate

Fox Rothschild LLP on

Texas’s status as one of the nation’s most “business-friendly” states remains under threat as policymakers grapple with the fallout of a polarizing presidency and shifting demographics. There is no better example than the...more

Cozen O'Connor

Texas Power Companies Investigated Post-Storm | Cryptocurrency Investors Misled| Student Loan Relief

Cozen O'Connor on

2022 AG Elections- Republican Candidate Seeks 2022 Rematch Against Minnesota’s Incumbent Attorney General- •Doug Wardlow, general counsel for My Pillow, Inc. and a former state representative, has announced he will...more

McGlinchey Stafford

State COVID-related Foreclosure and Eviction Moratorium Updates

McGlinchey Stafford on

Alert October 23, 2020 Due to the economic impacts of COVID-19, many states have issued moratoriums on foreclosures and evictions. Some of those moratoriums have expired. However, even if a lender is now able to obtain a...more

Baker Donelson

Avoiding a Limitations Fight by Rescinding Acceleration

Baker Donelson on

Texas recently added a new statute aimed at providing lienholders and loan servicers an unambiguous method for unilaterally abandoning the acceleration of a loan's maturity. When a borrower defaults in paying an...more

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