FirstSouth, F.A. v. Lawson Square, Inc. (In Re Lawson Square, Inc.)

ARNOLD, Circuit Judge.

This ease requires us to determine what legal ceiling, if any, exists for interest rates on loans secured by a first lien on residential real property in Arkansas. We hold that the governing statute is Section 501(a)(1) of the Depository Institutions Deregulation and Monetary Control Act of 1980, 12 U.S.C. § 1735Í-7 note, and that there is no legal limit on interest rates on loans secured by a first lien on residential real property in Arkansas, so long as the requirements of that Section are met.

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Lawson Square, Inc., a developer of residential real estate, conceived a…