Clarksville chronicle. (Clarksville, Tenn.) 1857-1865, 1860-03-16
Conventional Interest law,

AN ACT to amend the Usnry LsescftEs Haais aSas
TO establish Conventional Rate Of interest.
/, SEcrroS I. De Il enacted by the General Assrm-
bly, Of the State Of Tennessee, That whenever any
person or persons shall contract for the san Of money
shall and may be lawful for the lender or lenders
or his their assignee or Representatives 10 recover
rate Of interest on the same up TO the time wRun
payment is made not TO exceed ten per cent per an.
mum Provided, That the parties 10 the same shall
have so agreed and such agreement be expressed In
The face Of the contract whether the be eridsa-
; eed h7 bond BILL note or other written inssru-
y thent
Size. 2. Ee & f6fther enacted That the rate ofln-
terest now established by law shall continue equal
and uniform thronEhodt fe stateas heretofore, and
no greater amount than SIX per cent sRAaS " pxfd
on any contract or obligation unless agreed On by
the parties according<c the provisions Of the first
section Of this act and any contract made contrary
thereto or forany othcrarticle than borrowed money
for greater rate than SIX per cent ehall BE- con-
sidered usurious and subject to all the penalties
hereafter prescribed Provided, That iimay b lrw-
fal to renew debts actually created for the lean Of
money at the rate Of ten per cent per annum, but
nothing in this act shah be so construed ss to auth
orize any debt or liability not originating for money
actually loaned bus to be renewed and an esorts
by direct or indirect means TO take snd receivs
greater rate Of interest than SIX per cent per snnu
for any debt demand or liability, the origin Of
which Is not for money actually loaned shsii BE-
deemed unlawful and operate as q release Of the
debtor from the entire amount ofsuch debt demand
or liability.
SEc. 3. Be Il further enacted, That hereafter 4
shall and may be lawful for any person on partoer-
ship of persons paying tar for the privilege as re
quired BY law, 70 purchase notes Bills Bonds or osR
er securities nade for the purpose Of sale at rate
Of discount not to exceed ten per cent psr snnur,
and IL the same be due at the time Of sale or Be as
to bear interest Judgment be confessed thereon
no greater rate shall be given therefor than ten per
cent discount including the interest that hasor may
accumulate thereon up to the day ofpayment agreed
on. lf
SIC. 4. Be Il further enacted, That ifany persou
or persons shall loan money at greater rate Of In
terest than ten per cent II shall not be lawful for
him or them to recover any portion Of the interest
so contracted for and II greater amount OF interest
than ten per cent per anuum shall be paid agreed
to be paid for the money. either directly or a
directly, the whole amount Of interest 90 paid ov
agreed to be paid shall be forfeited by the payee,
and fpaid the same may be recovered By the party
paying the same, bis heirs, personal reprasests-
tves creditors in any Court Of Tennessee having
jurisdiction Of such matters. isa4l1
SsB. s. Be 1t further enrcted, That if any person
or persons shall purchase any note, bond Of other
obligation topay money at greater rate Of discount
than ten per cent per annum including the interest
thereon that las accumulated at the time fpnrchass
or that viii accumulate TO the DAY fxed Tor pzy-
ment when the same Is made 70 be sold sprff eon-
tract shall be usurous In the hands Of sxeh parchss-
er purchasers or assignecs Affected with notice,
and the amount 80 taken or retained by way Of dis
count shall be recoverable in like manner a. provid-
ed in the 4th section of this act. And Whenever
note or other security is made to be sold the party
purchasing the same at illegal rates, above spec
fed, shnl be affected with notice OF the fact that 3
was made to be sold, nor shall II be necessary to
prove the same. s,s
SEC 6. Be It further enacted, That any psysga or
persons who shall violate tho provisions Of shis law
shall be subject to indictment or prescntmcnt as In
other cnses of misdemennor, aad shall be fined IN
sum not less than ten doTlars or If the usurss in
teres or discount be more than ten dollars he they
shall be fined In tho full amount so Illegally taken
or agreed 10 be taken. T1s 1Est
And 1t is further enaesed That an illegal contract
or agreement TO exact usurous rates Of interest or
discount as defncd in this law shall complete the
offence much 50 II the money had been recciv-
ed or retained by the offending party And Ia an
cases upon trials either at law or in equity whenif
appears from the proof that the provisions Of this
law have been violated by any nshfious practices on
contract IL shall be the duty Of the Circuit Judge Ia
open Court to direct the Attorney General to com
mence prosecution er etfeio against the party or
parties offending or II the facts be known Ia any
suits pending in Court of Chanccry, Il Is hereby
made the duty Of the Clerk and Master Of ouch
Court to notify the Circuit Judge of The circuit where
the offence is committed In open court Of she facts
who shall in like manner order the ATTORNEY Gem
cral to prosecute er oDeio, If in the opinion Of the
Judge, the facts viii sustain the prosecution and II
usury be proven IN any trial before Justice Of tho
Peace, he shall in like manner lay the facts beisss
the Circuit Judge of the circuit where the ofienss
has been committed, 10 be proceeded In as above.
SEC. 7. BE II further enacted, That Il shall be
lawful for all persons 10 discount solvent real tran
saction paper Of every description at rate not en-
ceedng ten per cent per antim, estimating Ia all
cases the rate Of interest If any, which said paper
may bear as a part OF such per cent and that 20
authorisc such discounts license shall BE- neces-
sary; Provided, That all sums received beyond the
said sum OF ten per cent per annnm shall not bo
lawful and any person guilty OF taking and receiy.
ing such excess shall forfeit the entire amouat ~
the discount to be recovered by the psrty peying
the same, his heirs personal Representatives o.
creditorsi and in addition thereto for every such
offence, shall be guilty Of a msdemeanor and sub
ject on conviction, to u fine Of not less than one
hundred dollars: That all money used under fhs
provisions Of tins act shall he taxed as other pre-
perty and returned by the persons usag the same
under oath to the tax assessor taxable property.
SEG 8. BE II fdrthrr enacted, That from and
after the first day OF February, 1851, and for each
year ap TO that month II shall be tho
duty Of all persons loaning money or using Il ID
any OF the ways specified In this act, TO keep a
ment or transaction, and furnish the aggregate
amount TO the tax assessor when called upon BY him
At any time after the said first day Of February to-
gether with list Of the anoants 80 loaned ipves.
ted or embraced IN said transaction at dinesent
limcsi and II any person or persons emhraced ~
hc provisions OF this act shall refuse TO state undsS
path, such amounts TO deliver a schedule thereof
as above required such person or persons offend
Ing shall be guilty Of a misdemeanor, and Il shah
he the duty Of the tax assessor 10 prosecute saiA
offender or offenders in the Circuit o. Criminal
Court having jurisdiction thereof who upon con-
Fiction, SHALL besides the payment Of costa be fined
nr the first offence one hundred dollars for tho
second two hundred and sfFy dollars for the third
i've hundred dollars, and five hundred dollars for
,yery additional offence 20 he paid into the treasury
n the siate, and also In the further Of twenty
I've doIarS 20 he paid TO said assessor. and 1--WE doll
ars To the Attorney General prosecuting the ssne.
SEo. o. BE II further enacted that tbis Iaw slAH
ake effect from and after the first day Of September
1860.
n n xuufT.ru0uaU