Court Opinion

ID: 9857599
Source: CourtListenerOpinion
Date Created: 2023-09-24 15:47:55.03082+00
Date Added: 2024-06-11T09:51:43.363291
License: Public Domain

SPEARS, Justice,
concurring.
I concur with the majority’s holding that usury was charged on Loan 607 to the Lawler Trusts. I disagree, however, to the extent this Court is once again approving of a clever device to evade usury laws. A lending institution’s practice of encouraging non-corporate entities to incorporate so a higher rate of interest can be charged is a subterfuge to avoid usury penalties. RepublicBank Dallas N.A. v. Shook, 653 S.W.2d 278, 283 (Tex.1983) (Spears, J., dissenting); see also Texas Commerce Bank—Arlington v. Goldring, 665 S.W.2d 103, 104 (Tex.1984) (Spears, J., concurring). I suppose the next step will be for this Court to approve the current pernicious practice of many lenders to demand 50% of the equity or ownership of the business or project from the borrower before the loan will be made. I see little difference in this practice and extorting “protection” money.