At my prior bank, it was the opinion of legal counsel that charging interest before the borrower has use of the loan funds (during the rescission period) violates usury in Texas and so they advised the bank not to do it.

Does anyone know if this is true and where the legal citation with respect to this can be found?

Its true. Where? Just based on the definition of interest as a charge for the use, forbearance or detention of money. If they don't have it, you can't charge interest on it. And you can cross-examine me on this and argue to we're both blue in the face, but it isn't going to change the fact that this is the prevailing belief in Texas.

Thank you Mr. Zaibatsu.....I was hoping you would read and answer the question for me.

I hope everything is going well with you!!

You're welcome. I am doing well. How are things up your way?

Well.....miss my old stomping ground.....and the relationship my bank had with your organization....since my current bank doesn't have it!! My current job is OK but will never replace working with VMack at my former bank.

Who knows though....I may run into you some day at some banking event. ;o)

Next time I'm up your way, I'll have to look you up.

Please do!! We can do lunch or coffee....invite VMack.

Will do!