What is the name of your state? IL
I loaned a friend $4000.00 at an interest rate of 7.5% annually. I was trying to find out the maximum interest rate permitted by Illinois law and found this statement:
ILLINOIS, the legal rate of interest is 5%. The general usury limit
is 9%. The judgment rate is 9%.
Does this mean that the rate on the note is illegal and makes the whole note unenforceable? Or does this mean that the legal upper limit is 5%-9%? On the note, next to the statement of 7.5% annually as the rate, I wrote in parenthesis "or maximum rate permitted by law, whichever is lower." Will this maintain the enforceability of the note? The note also has a severability clause.
Thanks for any help you can provide. I thought I did adequate research before I drew up the note and found the maximum rate to be %11, but now I have no idea where I got that number.What is the name of your state?
I loaned a friend $4000.00 at an interest rate of 7.5% annually. I was trying to find out the maximum interest rate permitted by Illinois law and found this statement:
ILLINOIS, the legal rate of interest is 5%. The general usury limit
is 9%. The judgment rate is 9%.
Does this mean that the rate on the note is illegal and makes the whole note unenforceable? Or does this mean that the legal upper limit is 5%-9%? On the note, next to the statement of 7.5% annually as the rate, I wrote in parenthesis "or maximum rate permitted by law, whichever is lower." Will this maintain the enforceability of the note? The note also has a severability clause.
Thanks for any help you can provide. I thought I did adequate research before I drew up the note and found the maximum rate to be %11, but now I have no idea where I got that number.What is the name of your state?