Sec. 53-390. Extortionate extension of credit. Conspiracy.
Sec. 53-390. Extortionate extension of credit. Conspiracy. (a) Any person who
makes any extortionate extension of credit, or conspires to do so, shall be guilty of a
class B felony.
(b) In any prosecution under this section, if it is shown that all of the following
factors were present in connection with the extension of credit in question, there is
prima facie evidence that the extension of credit was extortionate; but this subsection
is nonexclusive and in no way limits the effect or applicability of subsection (a): (1)
The repayment of the extension of credit, or the performance of any promise given in
consideration thereof, would be unenforceable, through civil judicial processes against
the debtor (A) in the jurisdiction within which the debtor, if a natural person, resided
or (B) in every jurisdiction within which the debtor, if other than a natural person, was
incorporated or qualified to do business at the time the extension of credit was made;
(2) the extension of credit was made at a rate of interest in excess of the rate permitted
under title 37 calculated according to the actuarial method of allocating payments made
on a debt between principal and interest, pursuant to which a payment is applied first
to the accumulated interest and the balance is applied to the unpaid principal; (3) at the
time the extension of credit was made, the debtor reasonably believed that either (A)
one or more extensions of credit by the creditor had been collected or attempted to be
collected by extortionate means, or the nonrepayment thereof had been punished by
extortionate means; or (B) the creditor had a reputation for the use of extortionate means
to collect extensions of credit or to punish the nonrepayment thereof; (4) upon the making
of the extension of credit, the total of the extensions of credit by the creditor to the debtor
then outstanding, including any unpaid interest or similar charges, exceeded ten dollars.
(c) In any prosecution under this section, if evidence has been introduced tending
to show the existence of any of the circumstances described in subdivision (1) or (2) of
subsection (b), and direct evidence of the actual belief of the debtor as to the creditor's
collection practices is not available, then, for the purpose of showing the understanding
of the debtor and the creditor at the time the extension of credit was made, the court
may, in its discretion, allow evidence to be introduced tending to show the reputation
as to collection practices of the creditor in any community of which the debtor was a
member at the time of the extension.
(1971, P.A. 239, S. 2.)