Text: HSB00559                          Text: HSB00561
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 560

Bill Text

PAG LIN
  1  1    Section 1.  Section 535.2, subsection 2, paragraph a,
  1  2 unnumbered paragraph 1, Code 1997, is amended to read as
  1  3 follows:
  1  4    The following persons A person may agree in writing to pay
  1  5 any rate of interest, and a to the method of computing such
  1  6 interest.  A person so agreeing in writing shall not plead or
  1  7 interpose the claim or defense of usury in any action or
  1  8 proceeding, and the person agreeing to receive the interest is
  1  9 not subject to any penalty or forfeiture for agreeing to
  1 10 receive or for receiving the interest.  This subsection
  1 11 applies to all of the following:  
  1 12                           EXPLANATION
  1 13    This bill amends Code section 535.2 and provides that the
  1 14 method by which interest is computed may be agreed to in
  1 15 writing by the following persons:
  1 16    1.  A person borrowing money for the purpose of acquiring
  1 17 real property or refinancing a contract for deed.
  1 18    2.  A person borrowing money or obtaining credit in an
  1 19 amount which exceeds $25,000, exclusive of interest, for the
  1 20 purpose of constructing improvements on real property, whether
  1 21 or not the real property is owned by the person.
  1 22    3.  A vendee under a contract for deed to real property.
  1 23    4.  A domestic or foreign corporation, and a real estate
  1 24 investment trust as defined in section 856 of the Internal
  1 25 Revenue Code, and a person purchasing securities as defined in
  1 26 Code chapter 502 on credit from a broker or dealer registered
  1 27 or licensed under Code chapter 502 or under the Securities
  1 28 Exchange Act of 1934, 15 U.S.C., ch. 78A, as amended.
  1 29    5.  A person borrowing money or obtaining credit for
  1 30 business or agricultural purposes, or a person borrowing money
  1 31 or obtaining credit in an amount which exceeds $25,000 for
  1 32 personal, family, or household purposes.
  1 33    Currently, the individuals identified may agree in writing
  1 34 to pay any rate of interest, but the section is silent as to
  1 35 the manner in which such interest is computed.  
  2  1 LSB 4182HC 77
  2  2 mj/cf/24
     

Text: HSB00559                          Text: HSB00561
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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