Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1860-02-29
conventional Interest Law.


Assembly of the State ofsTennessee, That
whenever any person or persons shall con-
tract for the loan of money, it shall and may
be lawful for the lender or lenders, or his or
their assignee or representatives to recover
rate of interest on the same mp to the time
when payment is made, not to exceed ten
per cent per anDum; Provided. That the par
ties to the same shall have so agreed, and
such agreement be expressed in the face OF
the contract. whether same be evidenced
by bond, bill, note, or other written instru-
ment.
SEC 2. Be it further enacted, That the rate
ofinterest now established by law shall con-
time equal aud 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 provisions of the first sec
ton of this act, and any contract made con-
trary thereto or for any other article than
borrowed money. for greater rate than six
per cent, shall be considered usurious, and
subject TO all the penalties hereafter pre-
scribed; Provided That it may be lawful to
renew debts actually created for the loan of
money at the rate of ten per cent per annum,
but nothing in this act shall be SO construed
to authorize any debt or liability not orig
mating for money actually loaned, thus to be
renewed; and all efforts by direct or indirect
means to take and receive a greater rate OF
interest than six per cent per annum for any
debt, demand or liability, the origin of which
is not for money actually loaned, shall be
deemed unlawful. and operate as release OF
/. the debtor from the entire amount of such
debt, demand. or liability.
SEC. 3. Be it further enacted, That here
after il shall and may be lawful for any
person or partnership of persons paying tax
for the privilege, as required by law, to pHr-
chase notes. bills, bonds or other securities,
made for the purpose of sale, at a rate of dis
count not to exceed ten per cent. per annum,
and If The same be due at the time of sale or
be made to bear interest or a Judgment be
confessed thereon, no greater rate shall be
given therefor than ten per cent discount,
! including the interests that has or may ac-
cumulate thereon up to the day of payment
agreed on.
SEC. 4. Be it further enacted, That if any
person or persons shall loan money at
greater rate of interest than ten per cent it
. shall not be lawful for him or them to re-
cover any portion of the interest so contract
ed for, and if a greater amount OF interest
than ten per cent per annum shall be paid
or agreed to be paid for the use of money.
either directly or indirectly, the whole amount
of interest SO paid or agreed to be paid shall
be forfeited by the payee, and if paid the
same may be recovered by the party paying
the same, his heirs, personal representatives
or creditors in any Court of Tennessee hay
ing jurisdiction OF such matters.
SEC. .. Be it further enacted, That if any
person or persons shall purchase any note,
bond or other obligation To pay money at a
greater rate of discount than ten per cent.
per annum, including the interest thereon
that has accumulated at the time Ofpurchase
or that will accumulate to the day fixed for
payment when the same is made to be sold.
such contract shall be usurious in the hands
OF such purchaser or purchasers or assignecs,
affected with notice and the amount so taken
or retained by way of discount shall be recov-
cradle in like manner as provided In the fourth
section of this act. And whenever note or
other security is made to be sold the party
purchasing the same at illegal rates, as
above specified, shall be affected with notice
OF the fact that 1t was made to be sold, Ror
shall it be necessary to prove the same.
SEC. q. Be it further enacted, That aay
person or persons who shall violate the pro-
visions OF this law shall be subject to indict-
ment or presentment as in other cases OF
misdemeanOr, and shall be fined in sum not
less than ten dollars, or if the usurious in-
terest or discount he more than ten dollars,
he or they shall be fined in the full amount SO
illegally taken or agreed TO be taken. Aud
it Is further enacted, That an illegal contract
or agreement to exact usurOus rates of in
terest or discount as defined in this law shall
complete he offence as much so as II the
money had been received or retained by the
offending party. And in all cases upon trials
either at law or in equity, when it appears
from the proof that the provisions OF this law
have been violated by airy usurious practice
or contract, it shall be the duty of the Circuit
Judge in open Court to direct the Attorney
General 10 commence a prosecution 1 oDScto
against the party or parties so offending, or
! II the facts be known in any suits pending
In Court of Cbaucery, it is hereby made the
, duty of the Clerk and Master OF such Court
to notify the Circuit Judge OF the circuit
where the offence is committed, in open
! court, OF the facts, who shall in like manner
/ order the Attorney General to prosecute er
oDteIo, II, in the opinion of the Judge, the
facts will sustain the prosecution; aud if usu-
ry be proven IN any trial before Justice OF
the Peace, he shall in like manner lay the
facts before the Circuit Judge OF the circuit
where the offence has been committed, 10 be
proceeded in as above.
SEC. 7. Be il further enacted, That il shall
be lawful for all persons TO discount solvent
real transaction paper of every description
at rate not exceeding ten per cent per an
mum, estimating in all cases the rate OF in
terest, if any, which said paper may bear as
part of such per cent, and that to authorize
such discounts 40 license shall be necessary:
Provided, That all sums received beyond the
said sum OF ten per cent per annum shall not
be lawful, and any person guilty of taking
and receiving such excess shall forfeit the en-
tire amount of the discount to he recovered
by the party paying the same, his heIrS, per-
sOnal representatives or creditors; and In
addition thereto. for every such offence, shall
be guilty of a misdemennor and subject, on
conv ctiOn, TO u fine Of not less than one ham,
dred dollars. That all money used under the
provisions of this act shall be taxed as other
property and returned by the persons using
the same under oath to the tax assessor as
taxable property.
SEc 8. Be it further enacted, That from
and alter the first day of February, 1861, and
for each succeeding year up to that month,
il shall be the duty of all persons loanIng
money, OF using il in any of the ways speci-
fed in this act. to keep a schedule OF account
OF each and every loan, investment or trans
action, and furnish the aggregate amount TO
the tax assessor when called upon by hlm. al
any time after the said first day OF February.
together with a list Of the amounts so loaned
Invested or embraced in said transaction at
different times; and II any person or persons
embraced in the provisions Of this act shall
refuse % state, under oath, such amounts, or
TO deliver Il schedule thereof as above requlr-
ed, such person or persons so offending shall
be guilty of a misdemeanOr, and II shall be
the duty of the tax assessor to prosecute said
offender or offenders in the Circuit or CrImi-
nal Court having jurisdiction thereof, who,
upon conviction. shall. besides the payment
of costs. be- fined for the first offence one hun
dred dollars, for the second two hundred and
fifty dollars, foI the third five hundred dollars,
and five hundred dollars for every additional
offence, to BE- paid into the Treasury of the
State, and also in the further sum of twenty
five dollars, to be paid to said assessor, asd
five doffars 10 the Attorney General prose
cutting thv same.
SIC 3. Be it further enacted, That this law
shall take effect from aud after the first day of
September, 1860.
W. c. WHITTHORNE,