When the loan is repaid, the Bank should file a document in the Real Property Records releasing its lien. See the Release of Deed form located at the end of this Chapter.
If real estate is located outside of the state of Texas, local counsel in that state 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. A form Arbitration Agreement is 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 power and existence (if appropriate) and enforceability of the real estate lien and debt.