IN RE LARA

Nos. 83-5748, 83-6067.

731 F.2d 1455 (1984)

In re Francisco Castillo LARA and Maria Elena Lara, Debtors. Gary ZAGER and Richard Westley Pion, Plaintiffs-Appellants, v. Francisco Castillo LARA and Maria Elena Lara, Shannon Haney, Trustee, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided May 1, 1984.


Attorney(s) appearing for the Case

H. Steven Schiffres, Dodell & Rosoff, Los Angeles, Cal., for plaintiffs-appellants.

Cheryl White Mason, Michael J. Bazyler, Los Angeles, Cal., for defendants-appellees.

Before CHAMBERS and SNEED, Circuit Judges, and MARQUEZ, District Judge.


SNEED, Circuit Judge:

The bankruptcy court held that a loan made by Gary Zager, a licensed real estate broker, and Richard Pion to Francisco and Maria Lara violates the usury prohibitions of Article XV of the California Constitution. The bankruptcy appellate panel affirmed. We affirm in part and reverse in part.

I.

FACTS

Appellees Francisco and Maria Lara, husband and wife, wished to borrow money to refinance an existing loan. They sought...

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