Please see specific state for details and/or
differences.
ALABAMA
| ALASKA | ARIZONA | ARKANSAS
| CALIFORNIA | COLORADO
| CONNECTICUT | DELAWARE
| FLORIDA
GEORGIA | HAWAII | IDAHO
| ILLINOIS | INDIANA | IOWA
| KANSAS | KENTUCKY | LOUISIANA
| MAINE | MARYLAND
MASSACHUSETTS | MICHIGAN
| MINNESOTA | MISSISSIPPI
| MISSOURI | MONTANA | NEBRASKA
| NEVADA
NEW HAMPSHIRE | NEW
JERSEY | NEW MEXICO | NEW
YORK | NORTH CAROLINA | NORTH
DAKOTA | OHIO
OKLAHOMA | OREGON | PENNSYLVANIA
| RHODE ISLAND | SOUTH
CAROLINA | SOUTH DAKOTA | TENNESSEE
TEXAS | UTAH | VERMONT
| VIRGINIA | WASHINGTON
| WEST VIRGINIA | WISCONSIN
| WYOMING
ALABAMA
Regulation for usurious charges may be found under Code Section 8-8-12.
Also see Consumer Finance Chapter 19 and Title 5 of the Mini Code. The interest rate
on a note under Section 8-8-10 is 12% per annum on judgments. Under Sections 8-8-4, 15% is permissible on amounts not less than $100,000.00. -Education.
Gambling is regulated under Sections 8-1-150 to 8-1-152. In Alabama, money
paid on an illegal contract may be recovered pursuant to Section 8-1-131. Forgery is
regulated under Section 13A-9-3 and Fraud under Section 8-9-10.
ALASKA
The Usury Code, Section 45.45.010, sets the legal rate of interest at 10.5%,
unless there is an acceptation under Section 45.45.010(B). Pursuant to Section 45.45.020, there can be no rate of interest higher than the
amount authorized in Alaska Code Sections 45.45.010 to 45.45.070.
ARIZONA
The legal rate of interest in the state of Arizona is 10% per annum unless a
different rate is specified in the contract and is permissible. Usury is the charging of an
interest rate where any person receives sum for a loan or forbearance of money that is
greater than that which is permitted by law. In such cases, such individuals shall forfeit
all interest (see Section 44-1202 of the Arizona Revised Statute).
ARKANSAS
“Interest and usury” is a matter covered under Subtitle 5 entitled “Contracts,
Notes and Other Commercial Instruments.” See Chapter 57 specifically.
CALIFORNIA
No extra details.
COLORADO
The Usury Code may be found in Section 5-12-103. The base rate of interest is
8%; however, individuals may agree to rates as long as rates do not exceed 45% per
annum. As indicated above, the legal rate is 8% per annum. See Section 5-12-101.Statutory interest is found under Section 5-12-102.
CONNECTICUT
The legal rates of interest are found under Section 37-3a in the state of
Connecticut. See also Title 37 (Chapter 673) regarding the rates of interest. The legal
rate of interest, pursuant to Section 37-1, is 8%. Certain other rates of interest may be
charged so long as the rates do not exceed the rate of interest permitted by law.
DELAWARE
The legal rate of interest is 5% over the federal reserve discount rate. Where
there is an agreed sum of interest in writing, the lawful rate may be up to 5% over the
federal reserve discount rate; see Section 6-2301. Usury is charging an illegal rate of
interest. Usury is regulated under various sections of the Delaware code. See Section
2304(b).
FLORIDA
For the appropriate rates of interest allowable in the state of Florida and in
regard to the rates of interest that may be charged, see Section 687.01 et. seq.
GEORGIA
The legal rate of interest in the state of Georgia is 7%.
The rate is set forth in Section 57.101. The penalties for charging an excessive rate of interest may be found in Section 57.112.
HAWAII
The standard rate of interest on judgments in the state of Hawaii is
10%. (See Code Section 478-3.) Also, it should be noted that the rate of interest in
Hawaii is 10%, pursuant to Section 478-2, when a different rate of interest
is not specified. Certain rates of interest may specifically relate to written contracts.
See Section 478-4.
IDAHO
The legal rate of interest in the state of Idaho is $.08 on the One
Hundred by the year or, in other words, 8%. See Code Section 28-22-104. Other rates
of interest may be specified in contracts, providing they do not exceed the rate of
usury.
ILLINOIS
Usury is essentially the charging of an illegal rate of interest. The appropriate
interest that may be charged in the state of Illinois is governed by various state
statutes. See particularly 815ILCS205/0.01 et. seq. The legal interest on judgments is
governed by 735ILCS5/2-1303 and 735ILCS5/12-109. A usurious loan is one in which
interest rates are determined to be in excess of those permitted by the usury laws.
INDIANA
The legal rate of interest is that which is permitted by law, and individuals or
entities charging interest are regulated pursuant to those laws. As to the regulation of
interest rates regarding banks and financial institutions, see Section 28-1-11-13. In
regard to the rate of interest on judgments, see Section 24-4.6-1-101. The rate of
interest on judgments in Indiana is 8%.
IOWA
The rate of interest in Iowa on judgments is 7% prior to January 1, 1981 and 10%
thereafter, unless there is a different rate specifically set forth by statute. See Section
535.2 of the Code of Iowa. Interest begins to run on the date the action was
commenced.
On finance charges, the interest is 2% of the loan principal where the loan
processing fee on a loan for the purchase of a dwelling is permitted. See Section 535.8.
Under Section 535.8, 1% of the amount refinanced on the loan processing fee is
allowed. Where the loan is from an industrial loan company, 10% is computed as an
add-on or discount method. (See Section 536.A.23(1).) On accounts receivable, in the absence of a written agreement, a transaction up
to $35,000 may result in a 21% interest with proper notice. A transaction over $35,000
has no maximum level with proper notice if it is a closed-ended transaction. An
open-ended
transaction is 15% on the initial $500 and 15% on the balance, providing there is
proper notice. See Section 535.11. However, in regard to automobile installment sales,
a rate of 21% is allowable on new automobiles, while 24% is permitted on vehicles not
more than two (2) years old. For vehicles that are over two (2) years old, the 27% rate of
interest is permitted.
Where suit is predicated upon usury, the judgment will be for the principal debt
without interest or cost, and the judgment will be entered in favor of the state against the
defendant for 8% per annum, so long as it remains unpaid. See Section 535.5 of the
Code of Iowa.
KANSAS
For usury and stated interest rate, see Section 84-9-201. For interest on
judgments, see Section 16-205, and for the interest of a contract rate, see Section 16-207.
KENTUCKY
Interest is governed under various sections of the applicable codes that would apply to loaning and funds. Criminal syndicates are governed
under Section 506.120. Recovery of interests is found in Section 413.140. For
petty loan companies, Section 288.620 should be consulted.
LOUISIANA
A usury is a charge of illegal rate of interest. Rates of interest are governed in the state of Louisiana under Civil Code Section 2924. After
January 1, 1988, the rate of judicial interest is published annually and set by
the Commissioner of Financial Institutions, in conjunction with the time or
reference rate average of the financial institutions including: the Chase
Manhattan City Bank, Morgan Guarantee & Trust Company of New York, Manufacturers Hanover Trust Company and the Bank of America National
Trust. This is how the state of Louisiana regulates the rate of judicial interest
as published annually.
MAINE
The legal rate of interest is 8% in the state of Maine. The 8% rate is what is paid
on judgments and as determined by the U.S. Treasurer pursuant to 14 1602. A contract
may specify a different rate of interest; however, it may not exceed specified rates which
are determined to be usury in the state of Maine. Usury is charging an illegal rate of
interest. A usurious loan is one whose interest rates are determined to be in excess of
those permitted by the usury laws. For usury law in Maine, see Section 11-9-201.
MARYLAND
Legal interest is defined under CL-12-101, and usury is defined at CL-12-101.
The general legal rate of interest under CL-12-102 is 6%. Usury is known to be the
charging of an illegal rate of interest. A usurious loan is one whose interest rates are
determined to be in excess of those permitted by the usury laws.
MASSACHUSETTS
Legal interest varies as to the form of transaction in the Commonwealth of
Massachusetts. For example, sales of finance companies are regulated pursuant to
255D:11, 29, 30. Open-ended credit plans are regulated under Chapter 140: 114B. For
finance charges relating to motor vehicles, see 255B:14, 21, 22. As to usury, see 107:3;
271:49. Usury is appropriately defined as charging an illegal rate of interest. It has also
been defined as an unconscionable and exorbitant rate or amount of interest charged.
MICHIGAN
The legal rate of interest in Michigan shall not be over 7% per annum; contract
rates may differ. Section 438.32 of the Michigan Code provides penalty for usurious
rates of interest that may be charged. Section 438.31 provides the basis for simple
interest in the state of Michigan. Usury is defined as charging an illegal rate of interest.
A usurious loan is one whose interest rates are determined to be in excess of those
permitted by the usury laws of the state.
MINNESOTA
The legal rate of interest is 6% (Code Section 334.01). Interest on judgments is
determined as of the 20th of December of the prior year. Interest is determined by the
court administrator based upon a secondary market yield for the most recent month on
one year U.S. Treasury Bills rounded out to the nearest percent. (See Section
549.09.)
A written contract may provide for any rate up to and including 8%, and the contract
must bear the same rate after maturity as it does before maturity. Finance charges on
loans may carry an interest rate up to 19% or 18% for open-ended credit, such as in
the case of credit cards on a 365 day year. Various code sections relate to this interest
and other interest that may be charged (see Section 48.194, 51A.385, 53.04, 52.14,
334.01, 334.012 and 334.019).
MISSISSIPPI
The legal rate of interest in Mississippi is 8% per annum as to interest on money.
See Section 75-17-1 to Section 75-17-11. The interest is also allowed to be 10% per
annum or 5% per annum above the discount rate.
MISSOURI
In Missouri, when no rate of interest is agreed upon, the rate of interest is 9%.
See Section 408.020. For dissertation and code regulations relative to interest, see
Section 408.015 et. seq. and 408.450 et. seq.
MONTANA
Interest in Montana may be charged in an agreement between parties; however,
such interest may not exceed 15% or an amount that is 6 percentage points per annum
above the prime rate of the New York banks. See Section 31-1-107. For penalties, see
Section 31-1-108 of the Code of Montana.
NEBRASKA
The legal rate of interest in the state of Nebraska was 12% per annum from 3-9-80 to 8-31-83. The rate changed to 6% commencing September 1, 1983 unless a
greater rate, not to exceed the rate in Section 45-101.03 is set forth in a contract. The
rate shall not exceed 16%.
NEVADA
The legal rate of interest, if there is no expressed written provision to the
contrary in the contract, is 12%. See Section 99.040 of Nevada Code. Pursuant to
Section 99.050, parties may agree for the payment of any rate of interest and for
compounding interest on money due on any contract. If no rate of interest is provided
by contract or specified in a judgment, a judgment shall draw interest from the time the
summons and complaint is served until the judgment is satisfied at a rate
that is equal
to the prime rate at the largest bank in Nevada as ascertained by the Commissioner of
Financial Institutions. (See Section 17.130.) NEW HAMPSHIRE
Legal interest may be at any rate; however, it is computed at 10%, unless a different rate is expressly stipulated in writing. Legal interest on
judgments is covered by Chapter 524, Section 1 et. seq. If loans are made up
to $10,000, it is necessary to secure a license from the bank commissioner of
the state of New Hampshire. Interest on open and closed-in loans of $10,000
or less is governed by Chapter 399A, see Section 3. In New Hampshire, there is no usury law; however, interest is regulated under Chapter 336 and
Chapter 524.
NEW JERSEY
The legal rate of interest is the state of New Jersey is 6% per annum. If a
written contract is provided, the rate of interest can be 16%, subject to an increase of
the regulations of the Commissioner of Banking. Usury is considered to be interest
that is beyond the legal rate or, in other words, the charging of an illegal rate of
interest. See Title 31, Chapter 1, Section 3 of the New Jersey Revised Statute.
NEW MEXICO
The legal rate of interest in New Mexico is 8-3/4%; however, for intentional
willful acts, it is 15%. The interest rates may be fixed by contract providing those rates
of interest do not exceed the rates that constitute usury in the state of New Mexico.
Usury is both a criminal and civil matter in the state of New Mexico and is a
misdemeanor under the criminal statute, see Section 56-8-14. Penalties may be
imposed in the civil courts with twice the interest if the suit is brought within a period of
time of two years, see Section 56-8-3. Usury is the charging of illegal interest.
NEW YORK
The maximum rate of interest on loans or forbearance for purchase of goods,
money or things is 16% per annum, see Section 14A of the Banking Law and Section
5-501 of the General Obligations Law. Section 108(1) to (5-A) of the Banking Law also
applies. Usury is a charging of an illegal rate of interest, and a usurious loan is one
whose interest rates are determined to be in excess of those permitted by usury laws.
For specific reference to usurious bonds, bills, notes, etc., see Section 5-511 of the
General Obligations Law and Section 5-521 of the General Obligations Law. The
violation of the Retail Installment Sales Law is a misdemeanor pursuant to Section
414(1) of the Personal Property Law.
NORTH CAROLINA
The legal rate of interest in the state of North Carolina is 8%; see Section 24-1
of the General Statutes of North Carolina. However, parties may contract in writing for
a different rate of interest as long as the rate of interest does not exceed the rate
announced by the Commissioner of Banks for the calendar month after the rate was
last published. This is providing it is a non-competitive rate as of the 15th day of the
month for six month U.S. Treasury Bills, plus 6% rounded to the nearest 1/2 of 1% or
16%, whichever is greater where the principal amount is $25,000 or less. Additionally,
where the principal amount involved is more than $25,000, the parties may agree upon
a different rate of interest. The penalty for usury is forfeiture of all interest. Usury is the
charging of an illegal rate of interest.
NORTH DAKOTA
The legal rate of interest is 6% in the state of North Dakota; see Section 47-14-05 of the North Dakota Century Code. However, it is possible for individuals to contract
for a different rate of interest. If a contract rate is different from the legal rate of
interest, such rate may not exceed 5-1/2% above the current cost of money as affected
by the average rate of interest payable on U.S. Six Month Treasury Bills in effect for the
state of North Dakota for six months immediately prior to the month in which the
transaction has occurred. A minimum interest charge of $15 may be made. Interest
may not be compounded.
OHIO
The maximum rate of interest that is permitted to be charged on a note is set
at 18%, see Section 1343.01(A) of the Ohio Revised Code. For small loans of $5,000
or less, the interest is regulated by the Ohio Revised Code, Section 1321. In such
cases, charge of interest, according to actuarial method, may not exceed 28% annually
on the unpaid balance up to $1,000 and 22% on any unpaid balance exceeding
$1,000. Pre-computed loans may be repayable in substantially equal and consecutive
monthly installments of principal and interest combined with certain exceptions. Default
charges and deferment charges may also be included. See Sections 1321.13(C)(1)(2)
and Section 1321.13(D) of the Ohio Revised Code. Second mortgages may bear
interest up to 21% per year on unpaid balances.
OKLAHOMA
In Oklahoma, the legal rate of interest is 6% as permitted by contract. Any rate
may be authorized by law that is in effect or subsequently enacted by the legislature,
see Section 15-266 of the Oklahoma Statutes. The maximum legal interest on
unsupervised consumer loans is 10%. The maximum rate on supervised consumer
loans is 21% on the unpaid balance or 32% on the first $720, 21% on the next $1,680,
and 15% on the amount of the unpaid balance over $2,400. See Sections 14A-3-201
and 14A-3-508A of the Oklahoma Statutes.
OREGON
The legal rate of interest charged by private and commercial lenders on ordinary
loans may be as agreed between the parties in regard to the transaction, except for
certain loans $50,000 or less. See Section 82-010, Section 708.480, 723.502 and
725.340 of the Oregon Revised Statutes. If an agreement is not reached, then the rate
of 9% applies to all sums once same become due. This is providing there is no
specified rate of interest. See Section 82-010. On installment loans and open credit,
Banks and National Banks may charge a late charge of greater than $5 or 5% of any
late installment. See Section 708.480. On business or agricultural loans of $50,000 or
less, the annual rate may not exceed the greater of 12% or 5% in excess of the
discount rate including any surcharge on the discount rate on a 90-day commercial
paper in effect pursuant to the Federal Reserve Bank and the Federal Reserve District
where the person making the loan is located.
PENNSYLVANIA
The legal rate of interest in Pennsylvania is 6%, and this is the maximum lawful
rate of interest for a loan or use of money in the amount of $50,000 or less where no
express contract has been made for a lower rate. See Section 41-201 and 41-202 of the
Pennsylvania Statute. Consumer Discount Companies providing loans of $15,000 or
less may charge 9-1/2% interest for the first 48 months and 6% thereafter or 2% per
month on unpaid principal balances. See Pennsylvania Statutes, Section 7-6213 and 7-6217.1.
RHODE ISLAND
The legal rate of interest in Rhode Island in the absence of a special agreement
is 12%; see Section 6-26-1. Under the provisions of 19-25-35 and 19-25-37, it is illegal
to loan money or to receive interest on money in an amount greater than 21% per
annum, except for duly licensed pawnbrokers and small loan businesses. The rate of
interest on judgments is 12% from the date of accrual of a civil action, except in
contractual actions where the interest is already provided. See Section 9-21-10.
SOUTH CAROLINA
The rate of interest for accounts or sums of money due is the rate of 8-3/4% per
annum; see Section 34-31-20 of the Code of Laws of South Carolina. However,
interest on judgment and decree shall be the rate of 14% from the date of entry or
judgment; see Section 34-31-20 of the Code of Laws of South Carolina. The maximum
finance charges on consumer loans and consumer credit sales are regulated by South
Carolina Protection Code; see Section 37-1-101 et. seq. Small loan companies
that are appropriately licensed in the state of South
Carolina may charge specific rates of interest on sums less than $7,500 and the sums
to be charged are regulated by statute. See Section 34-29-10 through 34-29-250 of
the Code of Laws of the state of South Carolina.
SOUTH DAKOTA
The interest rate on loans made by a licensee is at the rate of interest specified in
the loan on the contract for the unpaid balance. See Section 54-6-2.1 of the South
Dakota Codified Laws. Loan contracts shall not extend over 24-1/2 months on loans
under $1,000 and shall not extend beyond 36-1/2 months on loans from $1,000 to
$2,500. The loan may extend to 60-1/2 months on loans between $2,500 and $5,000.
See Section 54-6-20 of the South Dakota Codified Laws. Interest on judgments and statutory liens, including real estate mortgages and
UCC Security Agreements, is 12% per annum. See Section 54-3-5.1 of the South
Dakota Codified Laws.
TENNESSEE
The legal rate of interest in Tennessee is 10%; see Section 47-14-103 of the
Tennessee Code. The maximum rate of interest for a written contract signed by a party
to be charged is four (4) percentage points above the average prime loan rate as
published by the federal reserve system or 24% per annum, whichever is less. See
Section 47-14-103. The legal rate of interest upon judgments is 10%; see Section 47-14-121 and 47-14-122 of the Tennessee Code.
TEXAS
The legal interest in Texas is the interest allowed by law in absence of any written
agreement for a particular interest rate. See Section 5069-1.01(b) of Virnen’s Texas
Statutes. When no specific rate of interest has been stated, the interest shall be at the
rate of 6% per annum on all accounts and contracts. Section 5069-1.03 Virnen’s Texas
Statutes.
UTAH
The legal rate of interest in absence of a contract specifying or fixing the rate is
10%. See Section 15-1-1 of the Utah Code. See also the Uniform Consumer Credit
Code. Judgments on contracts bear interest as agreed; otherwise, judgments bear
interest at a federal post judgment interest rate, plus 2%. See Section 15-1-4 of the
Utah Code.
VERMONT
The legal interest in Vermont is 12% unless a specific statute indicates otherwise.
See Section 9-41(a) of the Vermont Statutes. For loans through Federal Savings &
Loans, the rate of interest shall not exceed 18%, and for retail installment contracts the
rate shall not exceed 18% of the first $500 and 15% of the balance. Interest on loans for
current or previous model year vehicles, motor homes, farm equipment, etc. shall not
exceed 18%; on older collateral, it may be 20%. See Section 9-41(a) of the Vermont
Statutes.
VIRGINIA
The legal interest in the state of Virginia is 8% per annum. The legal rate is
implied where an interest obligation exists, but is not stated in the contract. See Section
6.1-330.53 of the Code of Virginia. On judgments, the rate of interest is 9%. Where a
contract rate is not fixed, the rate of interest rate may be that which is charged on
judgments. See Section 6.1-330.54 of the Code of Virginia. Other charges for small
loans, charges in advance, revolving accounts, college loans and other circumstances
are also regulated by the Code of Virginia.
WASHINGTON
The legal rate of interest in the state of Washington is 12% per annum. See
Section 19.52.0101(1) of the Revised Code of Washington. Unless otherwise provided
in a contract, interest is simple interest and may not be compounded. For the
establishment of any interest rate by written agreement between the parties to a
contract, see Section 19.52.020. To determine the maximum rate that may be charged,
see Section 19.52.025 of the Revised Code of Washington. Any rate charged in excess
of 12% per annum must be done by agreement of the parties in writing. See Section
19.52.010 of the Revised Code of Washington.
WEST VIRGINIA
The legal rate of interest in West Virginia is 6% per annum in the absence of any
written agreement establishing a different rate; see Chapter 47, Article 6, Section 5. The
maximum contract rate is 8% per annum, however, a 6% rate may be used as an add-on
or a discount interest may be charged on installment loans within a maximum annual
percentage of 15% on discount loans. On revolving accounts or customer loans and
under certain circumstances, financial institutions may charge 18% per annum on $750
and 12% per annum on the balance that exceeds $750. WISCONSIN
The legal rate of interest in Wisconsin is 5% per annum unless the parties agree
in writing to the contrary. See Section 138.04 of the Wisconsin Statutes. The maximum
rate of interest is governed by Chapter 138 of the Wisconsin Statutes and, accordingly, a
different rate ceiling may apply depending upon the borrower, the purpose of the loan,
the security offered, and the date on which the loan was originated or refinanced.
WYOMING
The legal rate of interest in the state of Wyoming is 7% in the absence of a
specific agreement that fixes the rate. See Section 40-14-106 of the Wyoming
Statues. The Uniform Consumer Credit Code has been adopted by the state of
Wyoming and applies relative to interest that may be charged regarding certain
transactions. See Section 40-14-101 through 40-14-702 of the Wyoming Statutes.
Legal interest pursuant to judgments and decree is at 10%. See Section 1-16-102(a) of
the Wyoming Statutes.
|
