2020 Georgia Code
Title 7 - Banking and Finance
Chapter 4 - Interest and Usury
Article 1 - In General
§ 7-4-8. Commission to Third Person Does Not Make Lawful Interest Usurious
Except as the application of this Code section is modified by Code Section 7-3-5, where the lender neither takes nor contracts to take more than lawful interest, the loan is not rendered usurious by money paid or agreed to be paid others by the borrower in order to obtain the loan.
(Civil Code 1895, § 2887; Civil Code 1910, § 3437; Code 1933, § 57-104; Ga. L. 1957, p. 331, § 3.)
Editor's notes.- Code Section 7-3-5, referred to in this Code section, was repealed by Ga. L. 2020, p. 156, § 2/SB462, effective June 30, 2020.
Law reviews.- For article discussing methods of computation of finance charges in Georgia consumer credit contracts, see 30 Mercer L. Rev. 281 (1978). For note discussing the applicability of the usury laws to legitimate brokers' commissions, see 12 Ga. L. Rev. 814 (1978).
JUDICIAL DECISIONS
Commission to surety is not usurious.
- Premium or commission paid by principal maker of promissory note to endorser or surety to protect latter in risk assumed and to compensate the endorser for the endorser's services in procuring loan for which note is given, in which premium or commission lender has no interest, is in no sense usury. Jones v. Norton, 9 Ga. App. 333, 71 S.E. 687 (1910); Morgan v. Shepherd, 171 Ga. 33, 154 S.E. 780 (1930).
Whether one is agent of borrower or of lender is question for jury.
- Question whether agent was agent of borrower or of lender is question of fact which should be decided by jury. Williams v. Forman, 18 Ga. App. 242, 89 S.E. 459 (1916), later appeal, 147 Ga. 441, 94 S.E. 552 (1917).
Cited in Eubanks v. Shewmake Bros. Co., 30 Ga. App. 315, 117 S.E. 664 (1923); Vezzani v. Tallant, 121 Ga. App. 67, 172 S.E.2d 858 (1970).
RESEARCH REFERENCES
Am. Jur. 2d.
- 45 Am. Jur. 2d, Interest and Usury, § 138 et seq.
C.J.S.- 47 C.J.S., Interest and Usury; Consumer Credit, § 243.
ALR.
- Usury: expenses or charges (including taxes) incident to loan of money, 53 A.L.R. 743; 63 A.L.R. 823; 105 A.L.R. 795.
Usury: expenses or charges in form of commissions to agents, brokers, or like intermediaries incident to loan of money, 52 A.L.R.2d 703.
Payments under (ostensibly) independent contract as usury, 81 A.L.R.2d 1280.
Usury: charging borrower for or with expense or trouble of procuring money loaned, 91 A.L.R.2d 1389.
