interest rates on statutory and conventional interest; Wear and tear A. The interest is legal or conventional. B. Statutory interest is set at the following rates, namely: (1) at the rate set in R.S. 13:4202 on all amounts that are the subject of a lawsuit, which is why it is referred to as judicial interest; and (2) discounted amounts from banks at the rate specified in their statutes. C. (1) The amount of usual interest shall not exceed twelve per cent per annum. The same must be recorded in writing; The testimony of witnesses is in no way admissible. 2. Except as provided herein, if a person pays a higher rate of interest than that set forth above, by way of discount or otherwise, a contract may be recovered and collected within two years of the date of such payment. Usury is a very complicated area of law. Transactions that a person would not consider affected by usury, such as repurchase agreements, are often subject to these limits.
A word of warning: Before you try to lend money to someone or try to invest with a guaranteed return, consult a lawyer to make sure you don`t break usury laws. 3. (a) The owner or discount of a debenture or other written proof of debt for the payment of a sum of money, payable by order or holder or by assignment, is entitled to claim and claim the total amount of such bonds, debentures or other written evidence of debt and any interest of not more than twelve per cent per annum that may accrue thereon. Regardless of whether the interest rate or discount rate at which the same may or may have been discounted is higher than the interest rate of twelve percent per annum. B. Notwithstanding anything to the contrary, including, but not limited to, Louisiana Civil Code Sections 1939 and 2924, a bond secured directly or indirectly, in whole or in part, by an immovable hypothec in the form commonly referred to as a “global” hypothec is exempt from the application of usury and interest on interest laws if the nominal interest rate of the global mortgage does not exceed the interest rate. interest that is legally eligible in a conventional mortgage. Any contract for the payment of interest exceeding that authorized by law entails the forfeiture of all interest so agreed. The general wear limit shown is the rate that can be charged by one person or company to another.
In other words, if you lend $100.00 to your neighbor, the listed price is the limit. If you want to charge more than the advertised price, you will need a special license such as a banking license or pawnshop license. This also means that special types of loans, such as those from pawnshops or small credit companies, are not specified. Created by FindLaw`s team of writers and legal writers| Last updated June 20, 2016 This information may or may not represent the full scope of Louisiana`s laws of interest and usury. Many states may, from time to time, amend their laws with respect to permissible interest and usury rates, as well as exemptions. Be sure to review Louisiana`s Interest and Usury Act in its entirety and consult with a designated attorney if you have specific questions. States have their own interest laws and may vary depending on where you live. Regardless of the rate, the law is designed to help consumers by setting a cap on the amount of interest a creditor can charge. Depending on the type of loan or loan, the legal maximum in Louisiana is 12%. There are some exceptions for mortgages and loans for commercial or commercial purposes. The laws of many states state that you cannot lend money at an interest rate higher than a certain legal maximum called a “usury limit.” 9 min spent reading While it`s certainly easier said than done, the surest way to avoid financial problems with high-interest credit cards is to avoid credit card debt before it even starts.
Often, your best strategy for avoiding debt is to use your credit card responsibly and withdraw your entire balance as soon as possible, preferably monthly. None of us are perfect, and if you have significant credit card debt, you can still benefit from some consumer protection under federal law. In other cases, we have provided a “judgment rate,” which is the rate that final judgments make. In states without usurious borders, there may always be a limit imposed by the federal government. The reason is that the federal government`s astronomically high interest rates indicate that there are “loan sharking.” The basics of Louisiana interest laws are listed below. Unless otherwise stated, interest rates are simple and are not based on compound interest. In addition, the wear limits listed below are based on current limits, i.e. those in effect at the time of the completion of this research. Many states have had lower limits in the past.
In addition, in most states, a late fee or other fee from someone who owes another debt is also counted as interest. Court Decisions: 3.25 above Federal Reserve Bank Rate for this year Interest rates in the State of Louisiana are subject to the laws prescribed in Title 9, Title 12 Loan Code, Chapter 1 of Section 9: 3500. According to this article, the interest rate cannot exceed 12% per year. In accordance with Article 9:3501, any contract concluded between the parties for the payment of usurious interest shall result in the forfeiture of all such agreed interest. In addition, if a person pays a higher rate of interest than that required by law, Article 9:3500 may recover these amounts within two years from the date of payment. 2. Except as provided herein, if a person pays a higher rate of interest than that set forth above, by way of discount or otherwise, a contract may be collected and collected within two years of the date of such payment. The term “foreign limited partnership”, as used above, means any partnership incorporated in a state of the United States, other than Louisiana or the District of Columbia, formed and existing under the Limited Partnership Act or the Uniform Limited Partnership Act of that State, and such partnership need not be considered a limited partnership under the laws of that State. State.
It`s also important to understand that banks have separate rules, which is why the rate you pay for your car loan or credit card may be higher than the rates listed below. In 1980, due to high inflation, the federal government passed a special law that allowed domestic banks to ignore the government`s usury limits and set the interest rate at a certain number of points above the Federal Reserve`s discount rate. In addition, special charter organizations such as small loan companies and installment plan sellers, such as auto finance companies, have their own rules. On May 30, 2018, Louisiana Governor John Bell Edwards signed Act No. 566 of the 2018 regular session amending Section 38:2191(B) of the revised Louisiana Act, effective August 1, 2018, to provide interest on late payments by public entities.