124.251 – ILLEGALITY OF LOAN NOT A DEFENSE. The illegality
Texas Finance Code § 124.251
Summary
This law establishes that the illegality of a loan cannot be used as a defense by borrowers in legal actions initiated by credit unions to recover the loan amount. It primarily affects borrowers who may have taken out loans that are deemed illegal, as they cannot argue this point in court to avoid repayment.
Borrowers cannot use loan illegality as a defense.
Applies specifically to credit union loan recovery actions.
Ensures credit unions can enforce loan agreements despite legality issues.
Frequently Asked Questions
Why Attorneys Choose FlawFinder
Side-by-side with Westlaw and LexisNexis
Feature
FlawFinder
Westlaw
LexisNexis
Monthly price
$19 - $99
$133 - $646
$153 - $399
Contract
None
1-3 year min
1-6 year min
Hidden fees
$0, always
Up to $469/search
$25/mo + per-doc
Police SOPs
✓ 310+ departments
✗
✗
Zero-hallucination AI
✓ CitationGuard
✗
✗
Cancel
One click
Termination fees
No option to cancel
Explain Like I'm 5
In simple terms: Learn about Texas's ILLEGALITY OF LOAN NOT A DEFENSE. The illegality law, including definitions, penalties, and legal implications.. This means people must follow this rule, and breaking it can lead to criminal penalties.
FlawFinder provides legal information, not legal advice. Consult a licensed attorney for specific legal guidance.