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360.010 Legal interest rate -- Agreement for higher rate -- Minimum charge for
negotiated bank loan.
(1)
(2)
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.
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.
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