Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1860-02-23
Conventional Interest.

=
Of representatives on last Thursday
morning under a reconsideration. by
a vote of 80 ayes to 20 noes. The
bill establishes conventional interest
not to exceed ten per cent. ON money
loaned, bat leaves the law unchanged
in relation to all other transactions,
exceptin regard to penalties for usu-
ry. The following is a synopsis Of
the provisions of the bill as it passed
1.-The Senate:
Section provides that parties
contracting TO loan money may legal.
ly collect interest not to exceed ten
per cent; the same to be according to
contract, and to appear upon The
note or other evidence of debt.
Section 2 provides that the rate
of 6 per cent. shall continue the legal
rate in the absence of contracts te
the contrary, for any other article
than borrowed mon ey.
Section 3 provides that persons
paying taxes for the same may buy
notes, bills, bonds or ether securities
made for sale, at a rate of discount
not to exceed ten per cent; ''and il
the same be due at time of sale. OF
be made to bear interest, OF judg.
ment be confessed thereon, DO greateI
rate shall be given therefor than
ten per cent. discount, including the
interest that has or may accumulate
thereon up to tbs date of payment
agreed on: And it is further prout;.
ded that no note, bill, bond, or other
security for money negotiated accor.
ding TO the foregoing provision, shall
be allowed to bear more than six
per cent. per aunum, unless all Of
the interest agreed to be paid up to
the time fixed for payment shall be
counted in the discount so taken of.
Section 4 provides that persons
loaning money at more than ten pei
cent. shall not lawfully collect any
interest, and if paid, may be recov-
cred by the party paying, bis heirs,
creditors, sc.
Section 5 provides :hat persons
purchasing notes at a greater rate
of discount than ten per cent, count
ing interest accumulated or to ac-
cumulate, cannot collect the amount
so exceeding ten per cent; no notice
shall be necessary to parties purchas-
ing thata note is made to be sold.
Section 6 provides that notes, SC,
made to be sold shall not bear more
than six per cert. interest. unless the
additional interest is calculated in the
discount to be taken off, il being the
intention Of the act that ten per
cent per annum specified 10 the con-
tract, or any less amount, exceeding
six per cent shall apply alone to the
contracts between borrowers and
lenders.
Section 7 makes violations Of the
act indictable as misdemeanors, fina-
BILE not less than Sl0,or if the usurous
interest or discount be more, in the
full amount SO illegally taken;proyided
that a contract to violate the law
completes the offence as much as an
actual violation; makes it the duty
Of the Circuit Judge, in all cases
where it may appear from trials at
law or equity, that the law has been
violated, to direct the Attorney
General to commence a prosecution;
or if the facts are proven in a Court
Of Chancery, the Clerk and Master
is required to notify the Circuit
Judge, in open Court, of the offence
who shall in like manner, if be thinks
the proof sufficient, direct prosecution
to be made; Justices Of the Peace
are 10 like manner required to potily
the Circuit Judge.
Section s provides that the law
shall take effect from and after Sep
tember lst, 1860.
The House adopted the following
amendments, in which a concurrence
of the Senate is neoe ssary before the
bill becomes law: 49,
Section 2 was amended, making it
lawful to renew debts created by boz
rowing money at 10 per cent; but
provides against taking
more than 6 per cent for any liability
not originating in money loaned.
The proviso to section three was
stricken out.
A similar provision in section 5
vas stricken out.
Section six vas stricken out en-.
ire.
Another amendment makes it law
ri Ia dicoount Usoivant real trans.