# THEATTORNEY GENERAL OFTEXAB * AUOWIN.TNSAE lS7ll April 23, 1975 The.Honorable Robert E. Stewart Commirrionar Depertment of Banking John H. Reagan State Office Bldg. Aurtin, T-r ‘70701 Opinion No. *‘St39 Re: Maximum rate ofinterest which may be charged on a loan to l pertnerrhip compored rolely of two corporations.

, Dear Com@rrioner Stewart:

You have requeoted our opinion regarding the meximum rate of intereet whichmay be cherged one loen toa prtnerehip compored of two corporatiomrt Article 16, **rection** 11of the Texer Conrtitution provide8 **t&t:**

. . . in the ebsence of lcgirletion fixing maximum

r8tes ofinterert all contractr for l greeter rete of interert than **ten**per centum (10%)per 8nnum &all be deemed ururioua . . . Under article 5069-l. 02, the maximum rete ofinterert on l nylan il limited to ten **percent** per annum unle## euch rete ia otherriae fixed by 18W. Article 1302-2.09, however, provida an exception tothe rule where the debtor ie l corporetion:

. . . corporation8 . . . mey agree toend rtipulete for eny rete ofinterert ea ouch corporetion may determine, not tbcrxceed one and one-helf percent (1l/2%) **per** month, on l ny . . . debt
. . . or other obligetion of muchcorporation , . . , end **in** much inrtencem, the cleim or defenre of **uwry by**  ruch corporation, itml uc cea ao rs,

‘guerentorr, aarignm or anyone on itmbeNlf io prohibited
. . .
p. 2629. .

The Honorable Robert E. Shwrrt page 2 (H-589)

You 8rk whether apartnership composed solely of two corporrtiibnr m8y be deemed a “corporation” for purpoeer of article 1302-2.09, a0ae toqu8lify for lloan at l rats ofinteraat in exceee often percent per rnnuni.

By i 1973amendment to the Texae Buainere Corporatidn Act, every corporation WIT granted the authority:

[t]o be en orgrnieer, partner, member, arrociate: o.rmana@er ofany partnerrhip.
. . . Tex. Buti. C&p; Act, art. 2.02A(lg). Itie therefore clear that two corporetionr may form a partnerrhip purnuant to Texam law.

Although the Texae Uniform Partnerrhip Act provides that “[a]11 partnera Are liable jointly and severally for all debtr and obligations ofthe partnership, ” article 6132(b), rection 15, V. T. C.S., it ir aleo true tbat the partnerehip itrelf ir liable for itr own debts. Rule 28, Texar Ruler of.Civil Procedure, grrntr to l ny partnerrhip the authority to:

. . . sue or be sued in ita own partnership
. . .

name for the purpose ,ofenforcing for or againrt it a rubrtantive right. Furtherm,ofe, erticle 2223, V. T. C.S., provider that, in canon where a suit ir brought: ” against reveral partnero jointly indebted

. . . upon contract . . . judgment may be rendered therein 

### l

gainrt euch partnerrhip and 

### l gainrt the pertnere actually served.
. . . According to one court, the effect ofRule 28:

* . . ie to treet the partnermhip ee alegal entity, at leert to the extent that 8judgment may be obtained by it or 

### ajudgment may be enforced againrt it.

. Johaaon v. Pioneer Mortgage Co., 264 S.W.td 761 (Tex. Civ. App. --El Paro 1954, writ dirm’d.)
p. 2630The Honor8ble Robert E. Stewart page 3 (H- 589)

We h8ve diecovered no caee in any American jurisdiction which would lead to the conclusion that a partnerrhip composed oftwo corporationa ir 8nything other than a partnership. Itis therefore our opinion tb8t 8p8rtnerahip formed and existing in accord8nce with the terms ofthe Texao Uniform Partnerrhip Act and composed solely of two corporationr,may not be deemed 8 “corporation” for purpoacn of rrticle 1302-2.09, rnd that, aa 8 result, ten percent per annum is the m8ximum rate ofintereat which may be charged on a loan to such an entity. You have not inquired, 8nd we donot rerch the question, whether 8 corpomte member ofa partnership could itrclf interpose the defense of uaury in 8 suit on a partnerrhip debt on which the rate of interest ~8s gre8ter th8n ten but leas than eighteen percent per 8nnum. SUMMARY Ten percent per annum in the,maximum rate of ‘. ‘:: interert which may be charged on a loan toa p8rtnerehip composed of two corporations. Very truly yours,

APPROVED: A?& JOHN L. HILL Attorney General of Texas 

# 73LsP-wL DAVID M. KENDALL, Firrt Aaairtant
Opinion Committee 1R p. 2631