• Supreme Court Decision Will Create Major Concerns For Some Commercial Lenders
  • July 16, 2014 | Author: William F. Miller
  • Law Firm: Pannone Lopes Devereaux & West LLC - Providence Office
  • The laws of virtually every state prohibit lenders from charging interest on loans in excess of the “usury rate” - the maximum interest rate permitted under the laws of the state. However, usury statutes vary greatly from state to state. Not only do the maximum interest rates vary, but some states exempt certain loans, some count origination and other fees in the calculation of interest, etc. As a result, simply stating an interest rate that, on its face, is less than the maximum rate permitted in a particular state is not always a guarantee that the rate is not usurious.