Rensselaer Union, Volume 8, Number 41, Rensselaer, Jasper County, 29 June 1876 — United States interest Laws. [ARTICLE]

United States interest Laws.

It is well known that in this country each State is a law unto itself upon the subject of the rate of interest which may he charged upon money loaned. As it [frequently becomes a matter of some importance to know what rate is admissible in the various States, and what restrictions are placed on the lender, we have compiled the following synopsis, which gives in brief the rates of the different States, and also specifies the States in which usury laws exist. The statements are compiled from late reports, and will be found of decided convenience for purposes of reference: Alabama.—Legal Interest, eight per cent. Usurious interest cannot be recovered, and, if paid. Is to be deducted from the principal. Arkansas.—Legal interest, six per cent. Parties may agree, by contract, written or verbal, for whatever amount they will. California. —Legal interest, seven per cent. Ten per cent, on money overdue on any written instrument Connecticut. —Legal interest, seven per cest. Any person or corporation taking more than seven per cent, forfeits the value -so taken to any person who sues therefor within one vear thereafter, and prosecutes his suit to effect. Contracts to pay taxes on the sum loaned, or insurance upon estate mortgaged to secure the same, not usurious. District of Columbia.—Legal interest, six per cent. Ten per cent, may be paid on agreement. Any excess forfeits the whole interest. Bjdaware. —Legal interest, six per cent. Penalty for taking more —forfeiture of the money lent; half to tbe prosecutor, half to the State. Florida.—Legal interest, six per cent. But the usury Jaws are expressly abolished. Georgia.—Legal interest, seven per cent. More than legal interest cannot be recovered. All titles to property made as part of a usurious contract are void. Illinois.—Legal interest, six per cent Parties may agree upon ten per cent, orally or In writing. If more is agreed on or is taken, only the principal can be recovered. Indiana.—Legal interest, six per cent. Ten per cent, may be agreed upoc in writing. It may be taken in advance. Excess cannot be recovered, and, if paid, shall be considered as paid on account of the principal. lowa.—Legal interest, six per cent. Parties may agree in writing for ten per eent. If contract be for more, the creditor recovers only the principal, and interest at ten per cent is forfeited to the State. Kansas. —Legal interest, seven per cent Parties may stipulate for any rate not exceeding twelve per cent. Contract for more forfeits all interest Usurious payments held to be made on account of principal. Kentucky.—Legal interest, six per cent. Extra interest forfeited; if paid, may be recovered back. Louisiana.—Legal interest, five per cent. Conventional interest shall in no case exceed eight per cent, under penalty of forfeiture of entire interest. Owner of negotiable paper discounted for more than eight per cent may recover eight per cent Usurious interest may be recovered back, but must be sued for within twelve months. t Maine.—Legal interest, six per cent in the absence of auy agreement in writing. No bank can take a greater interest, unless by agreement In writing; bnt in discounting negotiable securities payable at another place, the bank may charge in addition the existing rate of exchange between the places of payment and of discount Maryland.—Legal interest, six per cent Excess forfeited. Massachusetts.—Legal interest, six per cent Any rate of interest or discount may be made by agreement: but if greater than six per eent it must toe in writing. Michigan.—Legal interest seven per eent. Parties may agree in writing upon any rate not exceeding ten per cent If more Interest is agreed for, only legal interest recoverable. Minnesota. —Legai interest, seven per cent Parties may agree in writing for more, but agreement not for any excess over

twelve per cent. Interest on judgment, six per cent. Mississippi.—Legsl interest, six per cent Parties may agree in writing (or ten per cent If more be taken or agreed for, the excess is forfeited. Missouri—Legsl Interest six per rent.; but parties may agree in writing for any rate not to exceed ten per cent If more be taken or agreed for, the creditor recovers "only tbe principal, and interest at ten per cent, is forfeited to the State. Parties may contract in writing for the payment of interest upon interest; but tbe interest shall not be compounded oftener than once a year. Nebraska.—Legal Interest, ten per cent. Parties may agree on any rate not exceeding fifteen per cent. On proof of Illegal interest, plaintiff shall recover only principal. Nevada.—Legal interest, ten per cent. But parties may agree in writing for any rate. New Hampshire.—Legal interest, six per cent. A person receiving more forfeits threefold the excess: but contracts are not invalidated by securing or tsklng more. Exceptions as to contracts of farmers and merchants, as In Maine. New Jersey—Legal interest, seven percent. On usurious contract principal can only be recovered. New York.—Legal interest, seven per cent A contract for more than legal interest is wholly void. If more than legal interest is paid, it may be recovered back within a year by payer, or wltbing the next three years by the overseers of the poor. No corporation can interpose the defense of usury; nor can a joint-stock company, having the powers of a corporation. North Carolina—Legal interest, six per cent. Eight per cent, may be recovered for loan of money by written agreement. On" usurious contracts no Interest Is recoverable. Ohio.—Legal interest, six percent Any rate not exceeding eight per cent may be agreed upon in writing;.excess cannot be recovered. Banks can charge or take by discount only six per cent Railroad companies may borrow money at seven per cent. Oregon.—Legal interest, ten per cent. Parties may agree for one per cent, a month. Usurious interest works a forfeiture of the principal and interest. Pennsylvania.—Legal interest, six per cent. Excess cannot be recovered. If paid, may be recovered back if sued for within six months. Rhode Island.—Legal interest, six per cent Any higher rate may be agreed upon. South Carolina. —Legal interest, seven per cent. Mgre than legal interest may be agreed upon by the parties. Tennessee.—Legal interest six per cent Parties may agree in writing for ten per cent If more be charged, the whole interest is forfeited, and if paid, may be recovered back; and tbe creditor is liable to a fine equal In amount to the excessive interest Texas.—Legal interest eight per cent Parties may agree in writing for twelve per cent. If more than this is agreed for, no interest can be recovered. Vermont.—More than six per cent, prohibited; and a person paying more may recover excess; but this is not to extend to usage of farmers or merchants, as in Maine aud New Hampshire. Virginia.—Legal interest, six per cent All contracts for a greater rate void. Excess, if paid, may be recovered back. The receiver is liable to a fine of double the amount of the principal. West Virginia.—Same as Virginia; but a new code is uhder consideration, which may make a change in the law of usury. Wisconsin —Legal interest,seven percent; but parties may agree upon a rate not exceeding ten per cent. Usurious contracts are void, and if exfcessive interest be paid, treble the amount thereof may be recovered back. — Locke’s Rational Monthly. The total quantity of coral annuallybrought rp from the bottom of the Mediterranean Sea by Italians is estimated to average a weight of about 160,000 pounds and Jto represent a value of $1,150,000. Of the above amount less than 12,000 pounds is valuable for jewelers’ purposes. The Spaniards are the only rivals oi the Italians in coral fisheries. They employ about sixty boats and obtain somewhere about 25,000 pounds per annum, which is valued at in the neighborhood of $160,000. * This coral is not so fine as the other, however, and has its special markets. After the coral is gathered it is sorted, and that which is considered as “ merchantable” is sent into iactories where women are employed to clean it, reassort it, class it out according to color and make it ready for the use of the trade. Only a very small quantity finds sale in Italy. More than nine-tenths is sent to foreign markets, and the total revenue from it is estimated to amount to $2,000,000 yearly. Most of the fishermen are convicts. Hence the proverb, “To be a coral-fiflheryou must be either a rogue or a vagabond.”