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Alabama Interest Rates Laws
More Information on Interest Rate Laws
| Legal Maximum Rate of Interest | If agreed upon in writing, up to 8% per year, otherwise 6% per year (§8-8-1) |
| Penalty for Usury (Unlawful Interest Rate) | Forfeiture of all interest and interest paid deducted from principal (§8-8-12) |
| Interest Rates on Judgments | Other than costs, dollar judgments bear interest from date of entry at 12%; judgment on contract action bears interest at rate in contract (§8-8-10) |
| Exceptions | Loans over $2000 (§8-8-5); debts under National Housing Act. Veterans' Benefits acts (§8-8-6); industrial development boards and medical clinic boards (§11-54-97, 11-58-15); bonds issued by public or non-profit organizations (§8-8-7); public housing bonds, State Board of Education Securities (§§24-1-32; 16-3-28); public hospital corporations (§22-21-6) |
Note: State laws are constantly changing -- contact an attorney or conduct your own legal research to verify the state law(s) you are researching.
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- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.
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