The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1889-04-05
THE INTEREST LAW.
The New Law Regulating Interest Passe<
by the Kansns Legislature.

The New Law Regulating Interest Passed
BY the Kansas Legislature.
At the recent session Of the Legislature
the law in regard to rates Of interest was
amended the legal rate being reduced
from seven aud twelve per cent to six and
ten per cent, the latter being the maximum
rate. Following Is the law in full, which
goes into effect after publication in tho
statute book, which will be about June L:
Section 1. Creditors shall DO allowed TO re-
ceive interest at the rate OF six per cent. per
annum. when no other rate of interest is agreed
upon for any money after it becomes due; for
money lent or money due on settlement Of &C.
count from the day Of lquidating the same and
ascertaining the balance: for money received
for the use Of another, and retained without the
owners knowledge Of the receipt; for
money due and withheld BY an unreason-
able and vexatious delay of payment or
settlement Of accounts; for all other
money due and to become due, for the forbear.
ance OF payment whereof an express promise
70 pay interest has been made: and for money
dav or monthly employees from and after the
end Of each month. unless the same shall be
paid within fifteen days thereafter.
Sec. 2 The parties to guy bond, bill, promis.
sorry note or other instrument or forbearance
OF money, m y stipulate therein for interest re-
ceivable 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 thereon per annum: Pro-
vided, That any person SO contracting for
greater rate Of interest than ten per cent. per
annum shall forfeit all interest so contracted
for in excess of such ten per cent. and In addi-
ton thereto shall forfeit q sum of money, to be
deducted from the amount due for principal and
lawful interest, equal to the amount OF interest
contracted for in excess Of ten per cent per
annum-
Sec 8. All payments Of money or property
made by way OF usurious interest or Of induce
ment to contract for more than ten 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 ten per cent interest
per annum, and the courts shall render judy
ment for no greater sum than the balance
found due after deducting the payments Of
money or property made as aforesaid; Provided,
that no bona fide indorsee Of negotiable paper
purchased before due shall be affected by any
usury exacted by any former holder Of such
paper. unless he shall have actual notice Of the
usury previous to his purchase. But double the
amount Of such excess Incorporated into
negotiable paper may, in such cases, after pay
ment, be recovered back by action against the
party originally exacting the usury. in any
court Of competent jurisdiction; Provided,
further, that such action shall be brought within
ninety days from the maturity Of such paper.
Sec. T. 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 six per cent. per annum, except as herein
otherwise provided
Sec. g. When a rate Of interest is specified in
any contract, the rate shall continue until full
payments made: and any judgment rendered
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 ten per cent. per
annum; and any bond, note, bill or other con-
tract for the payment Of money, which in effect
provides that any interest or any higher rate Of
interest shall accrue as penalty for any de-
fault shall be void as to any such provisiona