Southwestern Investment Co. v. Hockley County Seed & Delinting, Inc.

The court of civil appeals has held that the lender is subject to statutory penalties for usury under Article 5073, Vernon’s Ann.Tex.Civ.Stat, in a situation where the loan contract was usurious on its face and interest in excess of the legal limits was actually paid thereunder. 511 S.W.2d 724. The lender, upon being faced with an action for usury, reduced the final payment to a sum that resulted in bringing the amount of interest paid over the entire term of the loan within permissible limits. We are in agreement with the holding of the court of civil appeals, for to hold otherwise would…