Chap. 122.—An ACT in relation to Interest on Money.
Approved March 24, 1874.

Chapters 59and 1. Be it enacted by the general assembly, That sections

18/3 reletive to £Our, five, six, seven, and eight of chapter one hundred and

rate of interest thirty-seven of the Code of eighteen hundred and seventy-

amended. Code, three, and section six of chapter fifty-nine of the same, be

Peosstos amended and re-enacted so as to read as follows:

Legal rate of Ҥ 4. Legal interest shall continue to be at the rate of six

interest dollars upon one hundred dollars for a year, and proportion-
ably for a greater or less sum, or for a longer or shorter time;
and no person upon any contract shall take for the loan or
forbearance of money or other thing above the value of such
rate.

Contracts for “85. All contracts and assurances made, directly or indi-

more illegales rectly, for the loan or forbearance of money or other thing,

principal at a greater rate of interest than is allowed by the preceding
section, shall be deemed to be for an illegal consideration as
to the excess beyond the principal amount so loaned or for-

orne. :
Whetrateal- Ҥ 6. Any bank authorized to carry on business as a bank
of deculation” Of circulation, deposit, and discoudt, may loan money for a

ee. | ee oe me me el pO _* ane me salhn a | 3 ge aS a ee a & ai ui Let ft
payment of money, which will be payable within six months
from the time of discounting the same. Such bank may take
interest on its loans or discounts at the rate of one-half of
one per centum for thirty days, and the interest may be
received in advance. °

Ҥ 7. Any licensed broker or banker, and any corporation
authorized by law to make loans or to purchase or discount
bonds, bills, notes, or other paper, may loan money or dis-
count bonds, bills, notes, or other paper, may loan money or
discount any bill of exchange, promissory note, or other ne-
gotiable paper, at a rate of interest not exceeding one-half of
one per centum for thirty days, and may receive such interest
in advance. |

Ҥ 8. Any defendant may plead in general terms that the
contract or assurance on which the action is brought was for
the payment of interest at a greater rate than is allowed by
law, to which plea the plaintiff shall reply generally, but
may give in evidence, upon the issue made up thereon, any
matter which could be given in evidence under a special re-

lication. Under the plea aforesaid, the defendant may give
in evidence any fact showing or tending to show that the
contract or assurance, or other writing upon which the action
was brought, was for an usurious consideration; and when
no such plea is made, if the contract or assurance be in writ-
ing, and usurious interest be provided for therein, judgment
shall be rendered for the principal sum only.”

““§ 6. The money received on deposit, and other funds of
the institution, society, or bank, may be invested in or loaned
on any stocks or real security, or be used in purchasing or
discounting bonds, bills, notes, or other paper, subject to the
following restrictions: That no security for money or other
valuable thing which may have become payable, other than
certificates of debt of this state or of the United States, or
of corporations, shall be purchased for less than the full value
thereof, with all the interest due thereon; and no debt or
claim to become due, other than such certificates, shall be
purchased or discounted at a rate of discount or interest ex-
ceeding the rate of one-half of one per centum for thirt
days; but the interest in any case may be received in ad-
vance.”

2. Section ten of chapter one hundred and thirty-seven of
the Code of eighteen hundred and seventy-three is hereby
repealed.

3. This act shall be in force on and from the first day of
June, eighteen hundred and seventy-four.