2006 Kentucky Revised Statutes - .010   Legal interest rate -- Agreement for higher rate -- Minimum charge for negotiated bank loan.

360.010 Legal interest rate -- Agreement for higher rate -- Minimum charge for negotiated bank loan. (1) The legal rate of interest is eight percent (8%) per annum, but any party or parties may agree, in writing, for the payment of interest in excess of that rate as follows: (a) at a per annum rate not to exceed four percent (4%) in excess of the discount rate on ninety (90) day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve District where the transaction is consummated or nineteen percent (19%), whichever is less, on money due or to become due upon any contract or other obligation in writing where the original principal amount is fifteen thousand dollars ($15,000) or less, and (b) at any rate on money due or to become due upon any contract or other obligation in writing where the original principal amount is in excess of fifteen thousand dollars ($15,000); and any such party or parties, and any party or parties who may assume or guarantee any such contract or obligation, shall be bound for such rate of interest as is expressed in any such contract, obligation, assumption, or guaranty, and no law of this state prescribing or limiting interest rates shall apply to any such agreement or to any charges which pertain thereto or in connection therewith; provided, however, nothing herein contained shall be construed to amend, repeal, or abrogate any other law of this state pertaining to any particular types of transactions for which the maximum rate of interest is specifically prescribed or provided. (2) Any state or national bank may charge ten dollars ($10) for any loan negotiated at the bank in this state, even if the legal interest does not amount to that sum. Effective: April 1, 1980 History: Amended 1980 Ky. Acts ch. 77, sec. 1, effective April 1, 1980. -- Amended 1974 Ky. Acts ch. 321, sec. 1. -- Amended 1972 Ky. Acts ch. 216, sec. 1. -- Amended 1970 Ky. Acts ch. 67, sec. 2. -- Amended 1966 Ky. Acts ch. 234, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2218.