Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-12-21
A bill to amend the Usury Laws of the State and to
cstnhlish a Conventional Rate of Interest


establish Conventional Rate of Interest.
SECTION l. Be it enacted by the General Assembly OF
the State of Tennessee, That whCne"er any person or
persons shall contract for the loan OF money 1t shall
and may be lawful for the lender or lenders, or MS
or their assignee or representatives to recover a
rate of interest on the same up to the time when
payment is made, not to exceed ten per cent per
annum; PrOUided that the parties to the contract
shall have agreedand such agreement be express
ed in the face of the contract, whether the same
be evidenced by bill, bond, note or other written
lstrument
SEC , Be It further enacted. That the rate of in
erest now established by la shall continue equal
and uniform throughout the State as heretofore and
no greater amount than SIX per cent shall De palu
on any contract or obligation, unless agreed on by
the parties according to the provisions Of TIE first
section of this bill and any contract made contrary
thereto or for any other article than borrowed mo
new Tor greater rate than six FER cent, shall be
considered usurOus and subject to all the penalties
hereafter prescribed.
SEC, 3. Be il further enacted, That hereafter it
shall and may be lawful for any person or partner
ship of persons to purchase notes bonds, or other
securities made for the purpose Of sale at rate OF
count not to exceed ten per cent per annum anu
il the same be due the time of sale, or be made
to bear interest or judgment be confessed there
on no greater rate shall be given therefor imam
ten per cent discount, including the interest that
may accumulate thereon up to the day OF pay
ment agreed on: And ii is further prOuided, that no
note bill bond OF other security for money negotIa-
ted according the foregoing provisions, shall De
a lowed to bear than six per cent per ahnum;
and any agreement for greater amount on the face
of such paper so made to be discounted or sold IN
the market shall be usurous and subject the party
Offending to the penalties of this bill
Sac f. Be Il further eRdcted That If any person
or pe-sons shall loan money at greater rate OF IN
terest than ten per cent it shall not be awful LOT
| him them to recover any portion OF tle interest,"
SO contrf cted for; ana if greater amount OF inter
| est than ten per cent per annum shall be PAID or
agreed to be paid for the use of money, either OIL
rectv or indirectly the whole amount OF interest SO
raid or agreed to be paid shall be forfeited by te
| pavee and if paid the same may be recovered by
the party paving the same his heirs personal repre-
scntatyes or creditors, in any court OF tennessee
having jurisdiction of such matters
SEC s. Be It further enacted, That if any person or
persons shall purchase airy note, bond OF other CD
legation to pay money, at greater rate ii discount
than ten per cent per annum, including the interest
| thereon that mas accumulated at the time OF pur
chase or that will accumulate to the day fixed for
| payment when the same is made to be sold or sha
purchase any note bearing conventional rate OF IN
terest over six per cent, without estimating the su
peradded interest with the amount to be discounted
such contract shall be usuriOus IN the hands OF suct
purchaser purchasers, or asslgnees affected VIII
notice, and the amount so taken or retained by way
of discount shall be recoverable IN like manner Is
provided in the 4th section of this Dill ANA When
ever note or other security Is made to be Sold tho
party purchasing the same at illegal rates as above
| specified shall be affected with notice OF the fac
that it was made be sOld shall itbe necessary
! to prove the same.
SEC. G. BE It further enacted, That note made t
be sold or negotiated for money, shall bear great
cr rate than SIX per cent per annum 1t being the IN
tent and meaning of this law that ten per cent pei
annum specified in the contract, or any amount o
interest less than ten, but more than SIX per cent
| shall apply alone to the contracts between borrow
ers and lenders
SEC. I. Be It further enected That any person Oh
persons who shall violate the provisions OF this law
Shall be subject to Indictment or presentment as II
other cases of mSdemeanOr, and shall be nned IN
sum not less than ten dollars if the usuIious IN
tercst or discount be more than ten dollars, he OF
they shall be fined in the full amount SO Illegally
taken or agreed to be taken: And be further en-
acted That an illegal contract or agreement 10 eH
act usuriOLs rates of interest or discount as deIe'
i'm this law shall complete the offence, as mnch s.
As if the money had been received or retained b!
the offending party. And IN all cases, upon trlal
either at law or in equity, when it appears iron
the proof that the provisions OF this law nave Dee
violated by any usuriOus practice or CONTRACT
shall be the duty OF the Circuit Jedge IN open cOur
| to direct the Attorney General to commence a pros
ecution ex-ofcio against the party parties so OF
Tending; or if the facts be proven IN any suit pend
ING in a Court of Chancery, it is hereby made tn
duty of the Clerk and Master of such Court to nc
tify the Circuit Judge of the circuit where the OF
fence is committed in open court, OF the facts, Wh
| shall in ike manner order the Attorney General
prosecute ey-oficio if in the opinion of the Judg
the facts will sustain such prosecution; ana II usui
be proven in any trial before Justice OF the PeacS
he shall in like manner lay the facts before the Cli
| cult Judge of the circuit where the offence ma
been committed, to be proceeded IN as ABOVE Oil
reCted.
SEC 8. Be Il further enacted, That this law shall
take effect from and after the first day OF Septen
| bpr IS6O