legal rate of interest


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legal rate of interest

The rate of interest set by state law in the absence of an agreement by the parties.It is usually the same rate established for interest on judgments.Contrast with lawful interest.

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These former investors are the subject of a lawsuit attempting to force them to return interest paid to them that falls well within the legal rate of interest of New York state.
It is very common for mortgage documents to provide that if it is determined that the interest rate is usurious, that amount which exceeds the legal rate of interest will not be deemed interest, but will be considered to be a payment toward reducing the principal of the mortgage.
The demand loans bear interest at the prime rate plus 2%, provided such rate shall in no event exceed the maximum legal rate of interest permitted by applicable law.

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