Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-10-18
Conventional Interest.

change in the interest laws of the State
will engage the attention of the Legislature
The subject has already been introduced in
each House. A bill introduced in the Sen
ate by Mr.. PAYNE has been printed. The fol-
lowing is a copy. We understand that the
prospect is very fair for its passage in that
branch ofthe Legislature by a decided MAORI
ty:
A BILL
To the Usury Laws, and to curtail the profits
Of Brokers and Note Shavers. -
Section l. Be Il enacted By the General Assem-
dy Of the State Of Tennessee. That whenever any
person or persons shall hereafter contract for
the loan of money it shall, and may be law
full for the lender or assignee, to recover a
rate of interest on the sum so loaned. not ex
ceedinn 10 per cent per annum, PROVIDED, that
the parties to the contract shall have SO
agreed, and such agreement be expressed in
the face of the contract, whether the same he
| endorsed by bill, bond, note or other written
| instrument. ------
Section 2. Be ii further enacted That the
rate of interest established by law. shall con-
time equal and uniform throughout the State
as heretofore, and no greater amount than
SIX per cent. shall be paid on any contract
or obiigation, unless agreed on by the par
ties, according to the conditions and provis-
ions of this Bill. - 4 = 49,. e. go
Section 3. BE IL further enacted, That all
laws granting the privilege of dscOunting Sc
curities, or shaving notes, that come in con-
f1ict 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the same are hereby repealed; and hereafter,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 tor the pur-
poses of sale at rate of discount not to ex-
coed 10 per cent. per annum; and If the same
be made to be due at the time OF sale, or
Judgment confessed for such purpose, then
the same may be purchased at 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 greater rate of
interest on any such securities as those spec
fled in this section, than six per cent, per
annum, from the parties owing or paying the
same.
Section 4. And be ii further enacted, That if
anv 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 re-
cover any portion of the interest so contract
cd for ; and if a greater amount OF interest
than 10 per cent. per annum shall be paid
for the use of 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-
ton of such matters.
Section g. BE IL further enacted. That if any
person or persons, shall purchase any note,
bill, bond or other obligation, for the pay
ment of money at a greater rate of discount
than is specified IN the Sd section of this Act,
where the same is made for the purpose of
sale. such purchase shall be usurious in the
hands of the purchaser, to the full extent of
the discount on such paper, and the amount
of discount so illegally taken, shall be recOv
everable from the party receiving the same,
in like manner. specified in the 4th section
of this Act. Nor shall it be necessary 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.
Section 6. BE 1t further enacted. That the
provisions of this Act shall apply to trustees
of every description and it shall hereafter
he the duty of the Clerks OF the different
Courts of the State, in making settlements
trustees. TO examine 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.
Section z. BE IL further enacted, That any
person OF persons who shall violate the pro-
visions of this law, shall be held subject to
indictment or presenimeBt, as in other cases
of misdemeanor, and shall be fined in sum
not less than ten dollars; or 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 il shall be the duty of the Cir
cult Judges to give this law in charge to the
Grand Juries.