The home journal. (Winchester, Tenn.) 1858-188?, 1860-03-29
CONVENTIONAL INTEREST LAW.


Rate of Interest.
SEC. |. Be it enacted by the General
Assembly Of tho State Of Tennessee,
that Whenever any person or persons
shall contract for tho loan Of money, it
shall and may be lawful for the lender
or leaders, or his or their assignee or
representatives to recover Il ratio Of in
terest on the same up to the time when
payment IL made, not to exceed ten per
cent. per aunun; Provided, that the par
ties to the sumcshall have so agreed, and
such agreement be eXpresscdin the face
ofthe contract, whether the same be cvi-
dcnccd BY bond, bill, or note, or other
written instrument.
SEC. =. BE it further enacted, That
the rate Of interest now established ny
law shall continue equal and uniform
throughout the State Tvs heretofore, and
no greater amount than six per cent.
shall be paid on any contract ~ obi
cation, unless agreed upon by the par
ties according to the provisions Of the
first section Of this act, and any con-
tract mado Contrary thereto, or for any
other article than borrowed money, for
II greater rate than six per cent, shall
be considered usurious, and subjec. to
all the penalties hereafter prescribed ;
Provided, That it may be lawful to re-
new debts that are actually created for
the loan Of money at the rate Of ten per
cent. per mnum, but nothing in this act
Shall be 50 construed as to authorize any
dept or liability not originating for
money actually loaned, thus to be re-
ncwcd; and all efforts for direct or in
direct means to take and receive n great
or rate Of interest than six per cent, per
mnum lorany debt, demand or liability,
the origin Of which is not for money
actually loaned, shall be deemed uhlaw-
fdl AM operate rs a release OF the deb
tor from the entire amount otsuch debt
demand, or liability.
SIC, s.. BE it further enacted, That
hereafter it shall and may be lawf | Tor
any persons or partnership Of persons
paying tax for the privilege, as required
by law, t. Il chase notes, bills bond OF
other securities, made for the purpose OF
sale, at Il rate ofdiScount not to exceed
ten per cent. crannum. and 1.-THE same
be due ut The time of sule0r be- made to
bear interest, ora Judgment be confess
ed thereon, no greater rate shall be Civ
Ell therefor than ten per cent. discount,
including the interests chat has or may
accumulate theroonu to the day ofpay-
mont agreed on.
%Ec. I. Be it farther enacted, That
if any persona or persons shall loan mon
ey atn greater rate OF interest than ten
per cent. it shall not be lawful for him
or them to o any portion OF tho
interest so contracted for, and if Il great
or amount shall be paid or agreed
to be paid for the use of money,
either directly on Indirectly, the
whole amount Of interest so paid or
agreed to be paid shall be forfeited by
the paycc, and if paid the same may be
reeovercd by tne party payingthe same,
his heirs, personal representatives or
C ed tors in any Court in Tennessee hay
ing Jurisdictions Of such matters.
SEC. 3. Be it further enacted, That if
auy person or persons shall purchase
any note bond or other obligation topay
money at a greater rate ofdiscount than
ten per cent. per annum, including tho
interest thereon that has accumulated
at the time OF purchase or that will ac,
cumuIatc to the day fixed for payment
When the same is made to be sold, such
il contract shlI! be u%SuriOus in the hands
Of such purchaser or purchasers OF rs.
sjgaccs, affected with notice, and the
amount 50 taken or retained by way Of
discount shall be recoverable in like
manner as provided in the fourth sec
ton Of this act. And whenever a note
or other security is made to be sold
the party purchasing the same. at iliega
rates, as above specified, shall be affect
cd with notice Of the fact that it was
made to bo sold, nor shall it be ncccssa
~ to y owe the same.
SIC. 6. Belt enacted, That anyporson
or persons who shall violate the pro
visions Of this law shal! be subject to in
/, dictmcnt or prcscntment asin other cas-
cs of misdemcanor, and shall be fined ii
Il. sum not less than ten dollars, or i
Industrious interest or discount be NOR,
than tcndoliars he or they shall be tincc
in tho full amount so illegally taken o
agreed to be taken. And it is further
enacted, That an illegal contract o.
agreement to exact usurious rates ofin
tcrcst or discount as defined in the law
shall complete the offence as much 81
as if the money had been received o
retained by the offending party. An'
} in all cases upon trials either at law
or in equity, when it appears from thu
proof that the provisions Of this Law
have been violated by any "usuriou
; yract,, Q Or contract, it shall be the dut,
of the Circuit Judge in open Court Il
, direct the Attorney General to common
| &c prosecution en- ogicio against the par
ty or parties so offending, or if the fact
be known in any suits pending in
I Court OF Chauccry, it is hereby mad
the d lty of the Clerk X Master Of sucl
l Court to notify the Circuit Judge Of thu
5 circuit where the offence is commit
ted, in open court Of the facts, who shall
in like manner order the Attorney Gen
! eral to prosecute er .6icio, ii, in the opin
= ion Of the Judge, the facts will sustain
the prosecution; and if usury be proven
, in any trial before 4 Justice ofthc Pcac
} he shall in ike manner lay the facts be
} fore the Circuit Judge Of the Circui
where the offence has been committed
} to be procecdedIin as above.
} SIC. I. Be it further enacted, That i
shall be lawful for 4 person to discoun
solvent real transaction paper of ever,
! descriptions, at Il rate not exceeding ter