Clarksville chronicle. (Clarksville, Tenn.) 1857-1865, 1859-11-18
A BILL
TO AMEND THE UsURY LAWS, AND TO CUR
TAIL THE PROFITS OF BROKERS AND
NOTE-SHAvERS.


Sec. 1. Be Il enacted by the General As
sen,by of the State of Tennessee, Thai
whenever any person or persons shall here
after contract for the loan Of money, il
shall and may be lawful for the lender, OF
his assignee, to recover rate Of interest
on the sum so loaned, not exceeding 1G
per cent. per annum; ProUided, that the
parties to the contract shall have so agreed
and such agreement be expressed in the
face Of the contract, whether the same be
evidenced by bill, bond, note, or other
written instrument.
Sic. 2. Be Il further enacted, That the
rate of interest established by law, shall
continue, equal and uniform throughout
the State as heretofore, and no greater
amount than six per cent. shall be paid
on any contract or obligation, unless
agreed on by the parties, according to the
conditions and provisions Of this bill.
SEC. 8. Be 1t further enacled, That all
laws granting the privilege of discounting
securities or shaving notes, that come in
conflict with the provisions Of this Act,
be and the same are hereby repealed and
hereafter it shall and may be lawful for
any person or persons, to purchase notes,
bills, bonds or other securities for money,
made for the purposes of sale, at rate of
discount not to exceed 10 per cent per
annum and if the same be made to be
due at the time of sale, or a judgment
confessed for such purpose, then the same
may be purchased at a discount not
greater than four per cent, to be taken
from the face of the paper or judgment.
Nor shall it be lawful to exact a greater
rate of interest on any such secui tiles as
those specified in this section, than six
per cent. per annum, from the parties
owing or paying the same.
Sec. 4. And be IL further enacted, That
if any person or persons shall loan money
at a greater rate of interest than 10 per
cent, it shall not be lawful for him or
them to recover any portion Of the in
terest so contracted for; and if greater
amount of interest than 10 per cent. per
annum shall be paid for the use of the
money, the whole amount of interest so
received, shall be recoverable at the suit
of the person paying the same, his heirs,
personal representatives or creditors, in
any court Of Tennessee having jurisdic-
tion Of such matters.
Sec. 5. BE IL further enacted, That if
any person or persons, shall purchase any
note, bill, bond, or other obligation, for
the payment of money at greater rate of
discount than is specified in the third Sec
tion of this Act, where the same is made
for the purpose of sale, such purchase
shall be usurious in the hands of the pur-
chaser, &C :he full extent of the discount
on such paper, and the amount of dis
count so illegally taken, shall be recover
able from the party receiving the same, in
like manner, as specified in the 4th Sec
ton of this Act Nor shall it be neces-
sary to prove that the party purchasing
the paper had knowledge of the fact that
it was made for the purpose of being sold
or traded.
Sec. 6. Be IL further enacted, That the
provisions Of this Act shall apply to trus,
tees of every description and it shall
hereafter be the duty of the clerks of the
different Courts of the State, in making
settlements with guardians, administra-
tors, executors, or other trustees, to ex-
anime them under oath as to the amount
of interest realized by them from the trust
funds in their hands, and charge them
with the same on such settlement.
SEC. Z. Be 10 further enacted, That any
person or persons who shall violate the
provisions Of this law, shall be held sub
ject to indictment or presentment, as in
other cases of misdemeanor, and shall be
fined sum not less than ten dollars; OF
if the interest or discount taken by such
offending party, be more than ten dollars
then he shall pay, by way of fine, to the
full amount SO illegally exacted, and i
shall be the duty of the Circuit Judges tt
give this law in charge to the Crane
Juries.