Thomas County cat. [volume] (Colby, Kan.) 1885-1891, 1889-02-07
THE INTEREST BILL.

The judiciary committee of the
house introduced the bill Wednesday
by which it is proposed to settle the
interest question. The committee re.
turned all the bills on the interest
question, some fifteen or twenty in
number, and introduced the following
bill as substitute. It reduces the
legal rate to 6 per cent, and the con.
tract rate to 10 per cent. 1t ia prob.
able that the bill will be passed with
but little opposition:
That section one of chapter 81 of
the general statutes of 1868 is amend
ed by section l. of chapter 50, of the
session laws of 1871 be and the same
is hereby amended so as to read as
follows:
Section l. Creditors shall be al
lowed to receive interest at the rate of
6 per cent per annum, when no other
rate of interest is agreed upon for any
money after it becomes due; for mon
ey lent or money due on settlement of
account from the day of liquidating
the same and ascertaining the bal
ance; for money received for the use
of another, and retained without the
owners knowledge of the receipt; for
money due and withheld by an un-
reasonable delay of payment or settle
ment of accounts; for all other money
due and to become due, for the for
bearance of payment whereof an ex-
press promise to pay interest has been
made; and for money due from cor
porations and individuals to their day
or monthly employees, from and after
the end of each month, unless the
same shall be paid within fifteen days
thereafter.
Sec. =. The parties to any bond,
bill, promissory note or other instru-
ment of writing, for the payment of
forbearance of money, may stipulate
therein for interest receivable upon
the amount of such bond, bill, note or
other instrument of writing and no
person shall recover in any court
more than ten per cent interest there
on per annum; provided, that any
person so contracting for greater
rate of interest than ten per cent per
annum shall forfeit all interest so con-
tracted for in excess of such ten per
cent, and in addition thereto shall
forfeit sum of money to be deduct
ed from the amount due for principal
and lawful interest equal to the am
cunt of interest contracted for in ex-
cess of the ten per cent. per annum.
Section 3.-All payments of money
on property made by way of usurious
interest or of inducement to contract
for more than 10 per cent per annum
whether made in advance or not, shall
be deemed and taken to be payments
made on account of the principal and
10 per cent interest per annum, and
the courts shall render judgment for
no greater sum than the balance found
due after deducting the payments of
money or property made as aforesaid.
Section L. All judgments of
courts OF record and justices of the
peace shall bear interest from the day
on which they are rendered, at the
rate OF 6 per cent. per annum, except
as herein otherwise provided.
Section 6. When a rate of interest
is specified in any contract that rate
shall continue until full payment is
made, and any judgment on on any
such contract shall bear the same rate
of interest mentioned in the contract,
which rate shall be specified in the
judgment, but in no case shall such
rate exceed 10 per cent per annum.