There is a major functionality of undertaking the process of loan in Texas. In accordance to this a proposal has been forwarded and the terms of paying the respective rate of interest as has been decided. There comes in a difference in the commercial section. The commercial transactions need more support and formalities for the legal proceedings. They are also privileged with quick responses, unlike any personal loan. As in case of transactions when it takes place in terms of commercial sector there is the need for both parties to have the bargaining power. The bargaining power is an inevitable part and needs necessary equipments to protect against those practices.
Application of usury laws to commercial transactions is in a way very convenient and is the means to be partial to the personal section. By following this means it limits the parties’ ability to structure the transactions. There is also the hurdle towards the process that gets undertaken in flexible and imaginative ways that could benefit both parties. This is not a process that is accepted in any other state. This is something that is prevalent only in Texas. All other states of US are free from any such hurdles or participation. As per one of the local correspondents,
David Disiere, their commercial sections are never supported by the usury laws. Rather there are more restrictions and stringent attitude towards the commercial categories. As for all the other states it is a matter of contribution that the commercial section should do. The idea is that they will never be encourages with the process of taking loans, but at the same time they will rather invest in the matters of social welfare.
