Clarksville chronicle. (Clarksville, Tenn.) 1857-1865, 1860-02-24
CONVENTIONAL INTEREST.

The Conventional Interest Bill, from the Senate,
passed the House of Representatives yesterday morn
ing under reconsideration by a vote of 80 ayes
to 20 noes. The bill establishes conventional in
terest not to exceed ten per cent on MONEY loaned
but leaves the law unchanged in relation to all other
transactions except in regard penalties for usury
The following is synopsis Of the provisions of the
bill as it passed the Senate tr
Section provides that parties contracting to loan
money may legally collect interest not TO exceed 10
per cent; the same TO be according to contract and
to appear upon the note or other evidence Of debt
Section provides that the rate of per cent
shall continue the legal rate in the absence of con-
tracts to the contrary, or for any other article than
borrowed money si
Section 3 provides that persons paying taxes for
the same may buy notes, bills bonds or other Sc
curities, made for sale at rate of Discount not to
exceed ten per cent; land il the same be due at
the time of sale or be made to bear interest or a
judgment be conferred thereon greater rate shall
be given therefor than ten per cent. discount in
Guiding the interest that has or may accumulate
thereon up to the day of payment agreed on Aud
it is further proUided that no note, bill bond, or
other security for money negotiated according TO
the foregoing provisions, shall be allowed to bear
more than six per cent. per annum, unless all of the
interest agreed to be paid up to the time fixed for
payment shall be counted in the discount SO taken
off"
Section provides that persons lSaning money at
more than ten per cent shall not lawfully collect
any interest, aud if paid may be recovered by the
parry paying. his heirs, creditors, &c.
Section 8 provides that persons purchasing notes
at greater rate of discount hanten per cent,
ting interest accumulated or TO accumulate, cannot
collect the amount so exceeding ten per cent; no
notice shall he necessary parties purchasing that
note is made to be sold.
Section provides that notes. &C., made to be
sold shall not bear than six per cent. interest
unless the additional interest is calculated in the
discount to be taken off it being the intention of
the act that ten per cent per annum specified in the
contract or any less amount exceeding six per cent
shall apply alone 10 the contracts between borrnw-
ers and lenders aa+ a.is
Section makes violations ofthe act ndictabeas
ms6emeanors ENABLE not less than $40, or if the
usurous interest or discount be more, in the full
amount so illegally taken; provided that contract
to violate the law completes the offence much
an actual violations makes it the duty of the Circuit
Judge, in all where it may appear from trials
at law or equity, that the law has been violated to
direct the Attorney General TO commence a prose-
cution or if the facts are proven in Court Of
Chancery the Clerk and Master is required to notify
the Circuit Judge, in open Courts, ofthe ofense. who
shall in like manner, If he thinks the proof suflic-
ent, direct prosecution to be made Justices ofthe
Peace are in like manner required to notify the
Circuit Judge.
Section provides that the law shall take effect
from and after September lst 1860.
/ Section was amended making it lawful TO re-
new debts created by borrowing money at 0 per
cent but especially provides against taking more
than per cent for any liability not originating in
money loaned.
The proyiso TO section three was stricken ont.
! a similar provision in section fifth was stricken
out.
/ Section was stricken out entire.
/ Another amendment makes it lawful TO discount
solvent, real transaction paper of any description
at rate not exceeding ten per cent, estimating al
ways the rite of interest said paper may bear a
part of such per cent? and that no license shall be
necessary to authorize such discounts; provided that
all sums received beyond the said ten per cent shall
he unlawful and the person so receiving shall be
guilty of a unisdemeanor; provided money used I'M
der this act shall be given in TO the tax assessor as
taxable property, from schedule kept by the per-
son oaning to be sworn to- and any evasion of this
provision shall be punishable as IL misdeme,Vnor. -
Nash Banner.