If a borrower or collateral is located outside of the state of Texas, Bank Counsel should be consulted as to other necessary documents.
The loan officer should also consult the Texas Credit Law Guide (published by TBA) for specific provisions relating to interest rate limitations and consumer loans.
The Bank should consider entering into an Arbitration Agreement with commercial borrowers wherein the parties agree to arbitrate any dispute relating to the loan documents. Sample forms for commercial and consumer loans produced and copyrighted by Bankers Systems, Inc. are located at the end of this Chapter.
The Bank may wish to obtain a Legal Opinion from the borrower’s legal counsel regarding the borrower’s corporate, limited liability company or limited partnership power and existence (if appropriate), enforceability of the debt and perfection of the Bank’s lien.