We are going to start charging agricultural loans a $50 loan fee, we already charge commercial loans $50, we are going to increase extension fees from $25 to $35, and start charging $200 for not having financial statements on commercial and agricultural renewals. We also want to start charging a $35 draw fee on draw notes.

We are also thinking about charging a $100 monthly service fee on all MSBs for the extra monitoring.

With that said, are we allowed to charge these fees in Texas?

I know it sounds like we are trying to charge a fee on everything...

I have read the Texas finance code and all the subsections... but it was clear as mud.

Thanks,

In need of help

Fees on commercial loans are matter of contract. MSBs are also open game.

The authorized fees for commercial loans are in FC Sec. 306.002. Fees and charges on commercial loans, except those authorized by FC Sec. 306.006 just aren't imposed. Even in states that have the UCC where commercial loans are unregulated, fees and charges on commercial loans are just not done. Just charge a higher interest rate.

Look closely at what this section says, particularly the last sentence:

Sec. 34.203. LOAN EXPENSES AND FEES. (a) A bank may require a borrower to pay all reasonable expenses and fees incurred in connection with the making, closing, disbursing, extending, readjusting, or renewing of a loan, regardless of whether those expenses or fees are paid to third parties. A fee charged by the bank under this section may not exceed the cost the bank reasonably expects to incur in connection with the transaction to which the fee relates.