Chap. 19.—An ACT in relation to the Interest on Money.

Approved March 15, 1870.

Whereas, the constitution provides that upon debts here-
atter contracted it shaH be lawful to receive any rate of in-
terest not exceeding twelve per centum per annum, which
may be agreed upon by the parties and be specified in the
bond, note, or other writing evidencing the debt; therefore,

1. Be it enacted by the general assembly, That section four,
chapter one hundred and forty-one, of the Code of eighteen
hundred and sixty, be amended and re-enacted so as to read
henceforth as follows:

‘$4. Legal interest shall continue to be at the rate of six
dollars upon one hundred dollars for a year, and proportion-
ably for a greater or less sum, or for a longer or shorter time;
but it shall be lawful to receive any rate of interest, not ex-
ceeding twelve per centum per annum, whicb may be agreed
upon by the original parties thereto, and be specified in the
bond, note, or other writing evidencing the debt; and all such
contracts entered into since the present constitution took
effect, are hereby legalized.”

2. Section thirty-three, chapter fifty-eight of the Code, is
amended and re-enacted so as to read as follows:

‘‘§ 33. Any bank authorized to carry on business as a bank
of circulation, deposit, and discount, may loan money for a
period not exceeding six months, and discount any bill of ex-
change, promissory note, or other negotiable paper for the
payment of money, which will be payable within six months
from the time of diseounting the same. A bank may take
interest on its loans or discounts, at the rate of one per
centum for thirty days, aud the interest may be received in
advance. Each bank shall so regulate its loans and discounts,
that they shall not exceed twice the amount of the capital
actually paid in.”

3. Section six, chapter fifty-nine of the Code, is amended
and re-enacted so as to read as follows:

Ҥ6. The money received on deposit, and other funds of
the institution, society, or bank, may be invested in or loaned
in any stocks or real security, or be used in purchasing or dis-
counting bonds, bills, notes, or other paper, subject to the fol-
lowing “restrictions: that no security for money or other
valuable thing which may have become. payable, other than
certificates of debts of this state, or of the United States, or
of corporations, shall be purchased for less than the full
amount thereof, with all the interest that may be due thereon,
and no debt or claim to become due, other than such certifi-
cates, shall be purchased or discounted at a rate of discount
or interest exceeding the rate of one per centum for thirty
days.. But the interest may in any case be received in
advance.”

4. Any'licensed banker or broker, and any corporation au-
thorized by law to make loans or to purchase or discount
bonds, bills, notes, or other paper, may loan money, or dis-
count any bill of exchange, promissory note, or other nego-
tiable paper, at a rate’of interest not exceeding one per centum
‘for thirty days, and may receive such interest in advance.

5. Section eleven of chapter one hundred and forty-one of
the Code of eighteen hundred and sixty is hereby repealed.

6. This act shall be in full force from and after. its passage.