Legal Rate Of Interest

The highest rate of interest that can be legally charged on any type of debt. The legal rate of interest applies to all types of debt, although this rate may differ from one type of debt to another. This limit is set to prevent lenders from charging excessive rates of interest to borrowers.

An interest rate that exceeds the legal rate of interest is classified as usury. There are usually stiff penalties for usury in most states, such as fines or even the forfeiture of principal and/or interest. The legal rate of interest can also be classified as the highest rate that lenders can charge for any legal claim that can be enforced in a court of law.


Investment dictionary. . 2012.

Look at other dictionaries:

  • legal rate of interest — See legal interest usury …   Black's law dictionary

  • rate of interest — A certain percent of the principal s urn charged by way of interest per year. 30 Am J Rev ed Int § 26. See legal interest …   Ballentine's law dictionary

  • criminal rate of interest — index usury Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • improper rate of interest — index usurious Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • unconscionable rate of interest — index usury Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • interest — in·ter·est / in trəst; in tə rəst, ˌrest/ n [probably alteration of earlier interesse, from Anglo French, from Medieval Latin, from Latin, to be between, make a difference, concern, from inter between, among + esse to be] 1: a right, title, claim …   Law dictionary

  • rate — n 1: a fixed ratio between two things 2: a charge, payment, or price fixed according to a ratio, scale, or standard: as a: a charge per unit of a commodity provided by a public utility b: a charge per unit of freight or passenger service see also …   Law dictionary

  • interest annually — See annual interest; at interest; compound interest; conventional interest; customary interest; discount; discretionary interest; Jewish interest; legal interest; legal rate of interest; marine interest; …   Ballentine's law dictionary

  • Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… …   Wikipedia

  • interest rate — n. The percentage used to calculate interest due on a loan. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. interest rate …   Law dictionary

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