USURIOUS INTEREST RATE Clause Samples
A Usurious Interest Rate clause sets a limit on the amount of interest that can be charged under an agreement, ensuring that it does not exceed the maximum rate permitted by applicable law. In practice, this clause typically states that if any interest charged is found to be higher than the legal limit, the excess will be reduced to the lawful maximum or refunded to the borrower. Its core function is to protect parties from inadvertently violating usury laws, thereby preventing the contract from being rendered unenforceable or subject to penalties due to excessive interest charges.
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USURIOUS INTEREST RATE. Notwithstanding anything to the contrary contained in this Loan Agreement or in the Note, the effective rate of interest under this Loan Agreement and the Note shall not exceed the maximum effective rate of interest permitted by applicable law. In the event that the interest referred to hereunder would be usurious in the Lender’s opinion at any time, the Lender reserves the right to reduce the interest payable by the Borrower. The provisions of this Paragraph 26 shall survive the repayment of the Loan.
USURIOUS INTEREST RATE. Notwithstanding anything to the contrary contained in this Note, the interest paid or agreed to be paid hereunder shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If Purchaser shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Note or, if it exceeds such unpaid principal, shall be refunded to Borrower. In determining whether the interest contracted for, charged, or received by Purchaser exceeds the Maximum Rate, Borrower may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of this Note.
USURIOUS INTEREST RATE. Notwithstanding anything to the contrary contained in this Note, the effective rate of interest under this Note shall not exceed the maximum effective rate of interest permitted by applicable law. The Borrower hereby agrees to give the Lender prior express written notice in the event any interest payment made to the Lender with respect to this Note will cause the total interest payments collected in any one year to be usurious under applicable law, and the Lender hereby agrees not to collect knowingly any interest from the Borrower in the form of fees or otherwise which will render this Note usurious. In the event that the interest referred to hereunder would be usurious in the ▇▇▇▇▇▇’s opinion at any time, the Lender reserves the right to reduce the interest payable by the Borrower. The provisions of this Paragraph 39 shall survive the repayment of this Note.
USURIOUS INTEREST RATE. Notwithstanding anything to the contrary contained in this Note, the interest paid or agreed to be paid hereunder shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If Purchaser shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Note or, if it exceeds such unpaid principal, shall be refunded to Issuer. In determining whether the interest contracted for, charged, or received by Purchaser exceeds the Maximum Rate, Issuer may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Note.