Practice area

Banking and Finance Law Attorneys in Texas

8 min read

  • 3 firms listed
  • 4 questions answered

Banking and finance attorneys work on both sides of commercial credit. Lenders need loan documents that secure the collateral and comply with Texas interest rate law. Borrowers need covenants and default terms they can meet. When a loan goes bad, workouts, forbearance agreements, and foreclosures follow procedures that have to be done correctly. Financial institutions also deal with state and federal regulators on charters, examinations, and enforcement.

Texas usury law applies to commercial loans. The Finance Code limits interest on a commercial loan to the ceilings computed under Chapter 303 and applies the subtitle’s remedies and penalties to commercial loans unless a specific provision says otherwise (Finance Code § 306.002). Business-purpose credit can carry a higher ceiling than consumer credit, but it is still a ceiling. When financing ends in default, related issues are covered in the guides to collections and creditor rights attorneys in Texas, bankruptcy attorneys in Texas, and, for investment products, securities and investment fraud attorneys in Texas.

What Banking and Finance Attorneys Handle

Commercial Lending

Attorneys structure and document term loans, revolving credit facilities, asset-based loans, real estate and construction financing, and acquisition financing. The documents include loan agreements, promissory notes, security agreements, deeds of trust, guaranties, and intercreditor agreements. For lenders, the work is making sure the loan is properly secured and priced within the legal ceiling. For borrowers, it is negotiating covenants, reporting duties, and default and cure provisions.

Interest Rate Compliance

Under Chapter 303, the weekly rate ceiling is computed by formula, but it cannot be less than 18 percent a year, and for credit extended for a business, commercial, investment, or similar purpose it cannot exceed 28 percent a year (Finance Code § 303.009). A “qualified commercial loan”, generally $3 million or more if secured by real property or $250,000 or more if not, with a borrower certification about legal and accounting advice when the loan is under $500,000, allows certain equity-based charges that are not treated as interest, but the parties still cannot contract for interest above the applicable ceiling (§§ 306.001, 306.101). Attorneys review rate, fee, and default-interest provisions so that charges counted as interest stay within the limit.

Commercial Sales-Based Financing

House Bill 700 (2025) added Chapter 398 to the Finance Code, which regulates providers and brokers of commercial sales-based financing, such as merchant cash advances. The law took effect September 1, 2025. A provider or broker may not do business in Texas unless it registers with the Office of Consumer Credit Commissioner (OCCC) before conducting business (Finance Code § 398.053). A person that was already engaging in business as a provider or broker on September 1, 2025 has until December 31, 2026 to register (House Bill 700, Section 2); that transition date is not a grace period for new entrants. Registration is made through the Nationwide Multistate Licensing System, and the chapter also requires disclosures and prohibits certain practices, according to the OCCC’s July 2026 rule adoption. Banks, credit unions, their holding companies, subsidiaries, and affiliates, and certain other persons are exempt (§ 398.003). Attorneys help providers register and prepare disclosures, and help businesses that received this kind of financing understand their rights.

Regulatory Compliance and Examinations

Depending on the charter and activity, an institution may answer to the Texas Department of Banking, the OCCC, the Federal Reserve, the FDIC, the OCC, the Consumer Financial Protection Bureau, or other state and federal agencies. Attorneys help build compliance programs, prepare for examinations, respond to findings, and handle enforcement actions. Consumer lending adds federal rules such as Truth in Lending and the Fair Credit Reporting Act on top of the Texas Finance Code.

Loan Workouts and Foreclosures

When a borrower defaults, the lender chooses among forbearance, modification, foreclosure, and other remedies. Attorneys negotiate workout and forbearance agreements and handle foreclosure on real property and personal property collateral, which follow specific Texas notice and sale procedures. Borrowers use counsel to negotiate time, restructure debt, and evaluate defenses.

Financial Institution Transactions

Bank formations, charter conversions, branch applications, holding company formations, and bank mergers need regulatory approval and specialized documents. Attorneys structure these transactions to meet both business goals and approval requirements.

How to Choose a Banking Attorney

Transactional or litigation focus. Some banking attorneys document loans and handle regulatory work; others litigate lender liability, guaranty, and enforcement disputes. Match the attorney to the work.

Lender or borrower side. Ask which side the attorney usually represents and how much of the practice is on your side of the table.

Regulator experience. For examinations and enforcement, ask about recent experience with the specific agency involved.

Current law. Texas finance law keeps changing, as Chapter 398 shows. Ask how the attorney tracks new statutes and rules that affect your products.

Texas Banking and Finance Attorneys

Jackson Walker LLP

Location: Austin, Dallas, Fort Worth, Houston, and San Antonio, Texas

Website: https://www.jw.com

Phone: 512-236-2000 (Austin)

Jackson Walker’s Finance practice has decades of experience in commercial and real estate lending markets. The team represents banks, credit unions, insurance companies, hedge funds, and nonbank lenders in the full range of financing transactions. Attorneys also represent borrowers, providing perspective on what works in competitive markets. The practice includes commercial lending, real estate and construction finance, loan workouts and foreclosures, and regulatory matters. The firm includes former state banking regulators who bring insider perspective to financial institution representation.

Practice Focus:

  • Commercial and real estate lending
  • Asset-based and cash flow lending
  • Loan workouts and foreclosures
  • Bank regulatory compliance
  • Financial institution transactions

McGinnis Lochridge

Location: Austin and Houston, Texas

Website: https://www.mcginnislaw.com

Phone: 512-495-6000 (Austin)

McGinnis Lochridge’s Financial Services Practice Group represents leading national financial service companies before Texas regulatory agencies including the Office of Consumer Credit Commissioner, Texas Department of Banking, and Texas Commissioner of Savings and Mortgage Lending. Attorneys have worked with regulators for decades to develop Texas laws governing commercial and consumer financial services. The practice includes commercial lending, securitization transactions, loan workouts and foreclosures, regulatory defense, and consumer lending compliance under state and federal laws.

Practice Focus:

  • Financial institution regulatory counsel
  • Commercial and consumer lending
  • Lender liability defense
  • Class action defense
  • Regulatory compliance

Crain Caton & James

Location: Houston, Texas

Website: https://www.craincaton.com

Phone: 713-658-2323

Crain Caton & James represents providers of consumer and commercial financial services in lending, litigation, arbitration, collections, workouts, foreclosures, and regulatory compliance. Attorneys formulate, structure, and document commercial and real estate loans including asset-based lending and warehouse lines of credit. The litigation team defends bank fraud matters, lender liability claims, FDCPA claims, wrongful foreclosure claims, and consumer class actions. Attorneys regularly teach for state and national trade associations and provide training for financial institutions.

Practice Focus:

  • Commercial lending documentation
  • Banking litigation defense
  • Consumer compliance
  • Loan workouts and foreclosures
  • UCC transactions

Costs and Fees

Loan documentation is often quoted as a flat fee or a capped fee per transaction, and on many commercial loans the borrower pays the lender’s legal fees at closing under the loan commitment. Multi-lender facilities, complex collateral, workouts, and regulatory matters are usually billed hourly, and the total depends on the number of parties, the amount of negotiation, and whether litigation follows. Ask for a written estimate and a fee agreement that states who is paying which fees.

Frequently Asked Questions

What is the difference between a term loan and a revolving credit facility?

A term loan provides a fixed amount, usually funded at closing and repaid on a set schedule. A revolving credit facility lets the borrower draw, repay, and draw again up to a maximum commitment during the facility term. Revolvers fit working capital needs; term loans fit specific purchases such as equipment or an acquisition.

What happens during a loan workout?

When a borrower cannot meet the loan terms, the lender may agree to modify them instead of enforcing remedies right away. A workout can include payment deferrals, rate changes, covenant waivers, or maturity extensions. In exchange, lenders commonly ask for additional collateral or guaranties and for acknowledgments of the debt and waivers of claims, which matter if the lender later enforces the loan.

Do Texas usury laws apply to commercial loans?

Yes. A commercial loan cannot carry interest above the applicable ceiling computed under Chapter 303 of the Finance Code, and usury remedies and penalties apply to commercial loans (§ 306.002). For business-purpose credit the computed ceiling is capped at 28 percent a year (§ 303.009). Qualified commercial loans allow some equity-based charges that are not interest, but the interest itself remains subject to the ceiling (§ 306.101). Because what counts as interest can include fees and charges, rate structures are worth having reviewed before a loan closes.

Do merchant cash advance providers have to register in Texas?

Yes, unless an exemption applies. Under Chapter 398 of the Finance Code, added by House Bill 700 (2025), a provider or broker of commercial sales-based financing must register with the OCCC before conducting business in Texas (§ 398.053). Providers and brokers that were already in business on September 1, 2025 have until December 31, 2026 to register; anyone starting later must register first. Banks, credit unions, and their affiliates are among the exempt persons (§ 398.003).

Sources

Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.