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TEXAS COMMERCE BANK v. CAPITAL BANCSHARES, INC.

Nos. 89-6037, 89-6089.

907 F.2d 1571 (1990)

TEXAS COMMERCE BANK NATIONAL ASSOCIATION, Plaintiff-Appellant, v. CAPITAL BANCSHARES, INC., et al., Defendants-Appellees. TEXAS COMMERCE BANK NATIONAL ASSOCIATION, Plaintiff-Appellee, v. CAPITAL BANCSHARES, INC., Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied September 7, 1990.

Attorney(s) appearing for the Case

Robert J. King, Edward L. Friedman, Liddell, Sapp, Zivley & Hill, Houston, Tex., for Texas Commerce Bank Nat. Ass'n.

Henri-Ann Nortman, Brill, Sinex & Hohmann, Houston, Tex., for Capital.

Daniel Lund, Montgomery, Barnett, Brown, Read, Hammond & Mintz, New Orleans, La., Joanne M. Vorpahl, Houston, Tex., for Frank Sullivan, et al.

Robert A. Rowland, Richard W. Riehl, Johnson & Gibbs, Houston, Tex., for Simpson & Pogue.

Before GARZA, HIGGINBOTHAM and DUHÉ, Circuit Judges.

DUHÉ, Circuit Judge:

Texas Commerce Bank, N.A. and Capital Bancshares, Inc. appeal from a summary judgment granting partial relief to Texas Commerce. We affirm in part and reverse and remand in part.

In July of 1986 Capital executed a promissory note for $3,988,000 in favor of Texas Commerce. The note provided that the interest rate on any past due amount would be the highest interest rate allowed by law. On the same day the directors of Capital executed...

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