Gonzales County Savings and Loan Association, Petitioner v. Charles R. Freeman, Jr., Respondents

Summary

The Texas Supreme Court affirmed the Court of Civil Appeals, holding that the savings and loan association failed to prove that the 2% loan fee was a valid commitment fee or a reasonable expense, so summary judgment in its favor was improper and the case was remanded. The Court also held that Section 5.07 of Article 852a does not redefine interest, so such fees are treated as interest unless the legislature expressly excludes them.