The illegality of a loan does not prevent enforcement of the loan agreement against or collection of the loan from a person who is otherwise liable on the loan, including:
(1) the borrower; or
(2) a guarantor or surety.
Tex. Fin. Code § 124.252
ILLEGALITY OF LOAN NOT A BAR TO ENFORCEMENT OR COLLECTION
Known as the Texas Credit Union Act
The act spans §§ 121–149 (219 sections).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.