2014 Tennessee Code
Title 47 - Commercial Instruments And Transactions
Chapter 14 - Interest Rates Generally
§ 47-14-107 - Computation of interest -- Installment loans.

TN Code § 47-14-107 (2014) What's This?

(a) This chapter does not limit or restrict the manner or method of contracting for interest, whether by way of add-on, discount, or otherwise, so long as the maximum effective rate of interest does not exceed that authorized by statute.

(b) For installment loans, the maximum effective rate of interest shall:

(1) Be determined in accordance with the actuarial method;

(2) Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and

(3) Not be affected by the prepayment of the loan, in whole or in part.

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