408.030. Interest, maximum rate allowed--penalty for overcharge, limitation on action for--"market rate" to be determined, when, how--discounting to financial organizations authorized.
Interest, maximum rate allowed--penalty for overcharge, limitation onaction for--"market rate" to be determined, when, how--discountingto financial organizations authorized.
408.030. 1. Parties may agree, in writing, to a rate ofinterest not exceeding ten percent per annum on money due or tobecome due upon any contract, including a contract forcommitment; except that, when the "market rate" exceeds tenpercent per annum, parties may agree, in writing, to a rate ofinterest not exceeding the "market rate". A contract forcommitment to lend money shall not exceed the maximum lawful ratein effect on the date of such contract. A loan entered intopursuant to a valid contract for commitment shall not exceed themaximum lawful rate in effect on the date of such commitment.The "market rate" for any calendar quarter shall be equal to themonthly index of long term United States government bond yieldsfor the second preceding calendar month prior to the beginning ofthe calendar quarter plus an additional three percentage pointsrounded off to the nearest tenth of one percent. Calendarquarters begin on January first, April first, July first, andOctober first.
2. If a rate of interest greater than permitted by law ispaid, the person paying the same or his legal representative mayrecover twice the amount of the interest thus paid, provided thatthe action is brought within five years from the time when saidinterest should have been paid. The person so adjudged to havereceived a greater rate of interest shall also be liable for thecosts of the suit, including a reasonable attorney's fee to bedetermined by the court.
3. On or before the twentieth day of the last month of eachcalendar quarter the director of the division of finance shalldetermine the monthly index of long term United States governmentbond yields for the second month of that quarter and shalldetermine the market rate for the next succeeding quarter. Thedirector of the division of finance shall cause such market rateto be posted pursuant to section 361.110, RSMo, and to bepublished in appropriate publications; such market rate to beeffective on the first day of the next succeeding calendarquarter.
4. Any bank, trust company or savings and loan associationmay purchase any note, bill of exchange, or other evidence ofdebt, payable in installments or otherwise, regardless of wherepayable, at a price that may be agreed upon.
(RSMo 1939 § 3227, A.L. 1974 2d Ex. Sess. S.B. 1, A.L. 1979 S.B. 305)Prior revisions: 1929 § 2840; 1919 § 6492; 1909 § 7180
Effective 7-3-79
(1960) Equipment was purchased and chattel mortgage given therefor which recited that the time price of the equipment was a specific amount, and stated that the purchaser would pay to the order of the creditor in thirty-six monthly installments the total amount of the time price, the transaction was not usurious notwithstanding the difference between the cash price and the time price was considerably in excess of the 8% interest allowed by statute. Wyatt v. Commercial Credit Corp. (A.), 341 S.W.2d 348.