Usury is defined by Black’s Law Dictionary as “…the charging of an illegal rate of interest.” In Arkansas, Courts have held that usury occurs when a lender charges more than the legally permissible maximum rate of interest, defined by Article 19, section 13 of the Arkansas Constitution, as amended by Amendment 60.

What is the usury rate in Arkansas?

Arkansas Statute The maximum lawful rate of interest on loans or contracts not described in Sections 1 and 2 shall not exceed seventeen percent (17%) per annum.

Does Delaware have a usury law?

Delaware has passed a number of laws designed to protect consumers and borrowers from exploitative lenders. These usury laws (also known as interest rate limits) are common throughout the country. In Delaware, the maximum amount of interest a borrower can charge is 5% over the Federal Reserve discount rate.

What’s the maximum interest rate you can get in Arkansas?

Arkansas’s legal limits on interest rates is encoded in the state constitution, which says both consumer and nonconsumer rates may not be more than 5 percent above the Federal Reserve discount rate (maximum 17 percent for consumer loans).

What is the Federal Reserve discount rate in Arkansas?

(ii) “Federal Reserve Discount Rate” means the Federal Reserve discount Rate on ninety-day commercial paper in effect in the Federal Reserve Bank in the Federal Reserve District in which Arkansas is located. (d) Miscellaneous: (i) The rate of interest for contracts in which no rate of interest is agreed upon shall be six percent (6%) per annum.

What are the interest rate laws in each state?

State Interest Rate Laws Legal interest rates can depend on the lender, borrower, loan amount, and the subject of the transaction. Choose a link from the list below for state-specific interest rate laws, including maximum rates, exceptions to interest rate limits, and more. Alabama Alaska Arizona Arkansas California

What is the maximum rate of interest on a contract?

The maximum lawful rate of interest on any contract cannot be more than five percent (5%) per annum above the Federal Reserve Discount Rate at the time of the contract.