Texas Commerce Bank National Association v. Capital Bancshares, Inc., Texas Commerce Bank National Association v. Capital Bancshares, Inc.

DUHÉ, Circuit Judge:

Texas Commerce Bank, N.A. and Capital Bancshares, Inc. appeal from a summary judgment granting partial relief to Texas Commerce. We affirm in part and reverse and remand in part.

In July of 1986 Capital executed a promissory note for $3,988,000 in favor of Texas Commerce. The note provided that the interest rate on any past due amount would be the highest interest rate allowed by law. On the same day the directors of Capital executed a letter agreement which provided that, if Capital did not pay the principal and accrued interest when due, they would “cause [Capital] to…