General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature Page: 568
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58TH LEGISLATURE-REGULAR SESSION
join any person, firm or corporation or any officer, agent, servant or em-
ployee of such person, firm or corporation who is engaged in the business
of habitually loaning money for the use and detention of which usurious
interest has been charged against or contracted to be paid by the borrower,
from demanding, receiving or by the use of any means attempting to col-
lect from the borrower usurious interest on account of any loan, or from
thereafter charging any borrower usurious interest, or contracting for
any usurious interest. All persons, firms or corporations, and their agents,
officers, servants and employees similarly engaged in making loans of
money as herein defined who reside in the same county, may be joined in a
single suit and no plea of misjoinder of parties defendant shall ever be
available to any defendant in such suit.
"Sec. 2. By the term 'habitually' as used in this Act is meant the
making of as many as three (3) loans on which or in connection with
which usurious interest is charged or contracted for within a period of
six (6) months next preceding the filing of any such suit.
"By the term 'usurious interest' as used in this Act is meant interest
at a rate in excess of ten per centum (10%) per annum, unless as to any
class of credit transactions a higher rate of interest is fixed, as in the Texas
Regulatory Loan Act, Acts of the 58th Legislature, Regular Session, 1963,
or other Acts fixing maximum interest rates, then as to such transactions,
the term 'usurious interest' means interest at a rate in excess of that al-
lowed by law.
"Sec. 2a. Nothing in this Act shall in any way modify, alter or change
any valid provision of Article 8 of Chapter 5 of House Bill No. 79, Acts of
the Regular Session, 48th Legislature, nor shall anything in this Act pre-
vent charging of any actual and necessary expense now or hereafter per-
mitted and authorized by law, and such shall not be considered interest.
In the trial of any application for injunction under this Act there shall
exist a prima facie presumption that the actual and necessary expenses
of making any such loan was One Dollar ($1) for each Fifty Dollars ($50),
or fractional part thereof loaned; but this prima facie presumption shall
extend only to the first note or debt owing at the same time by an individ-
ual to any person, firm, corporation, partnership or association, and shall
not apply to any renewal or extension thereof unless the original note or
debt and all extensions thereof were for a period of not less than sixty (60)
days.
"Sec. 3. In any such suit venue shall lie in the county of the resi-
dence of a defendant, or in a county where such business of loaning money
is being conducted by such defendant or in the county where such contract
was entered into by the borrower.
"Sec. 4. If any section, sentence, phrase or part of this Act shall be
held unconstitutional, such unconstitutionality shall not affect the valid-
ity of the remaining portions thereof."
Sec. 26. Amending Article 5069, Revised Civil Statutes of Texas, 1925.
Article 5069, Revised Civil Statutes of Texas, 1925, is hereby amend-
ed 45 to read as follows:
"Art. 5069. Definitions
"'Interest' is the compensation allowed by law or fixed by the parties
to a contract for the use or forbearance or detention of money; 'legal
interest' is that interest which is allowed by law when the parties to a
contract have not agreed upon any particular rate of interest; and 'con-
ventional interest' is that interest which is agreed upon and fixed by the
parties to a written contract. The maximum rate of interest shall not
exceed that specifically fixed by the Legislature as in the Texas Regulatory
45. Vernon's Ann.Civ.St. art. 5069.
568Ch. 205
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Texas. Legislature. General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature, legislative document, 1963; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221759/m1/904/?q=+date%3A1945-1972: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.