This is a draft from a friend of mine, who has decades in the legal and banking system in the USA and has ample experience in Belize’s. He propose this would be an appropriate usury law limiting interest rates in Belize. The proposed law is more liberal than California’s law. It is made more liberal so that the banks or others cannot attack it.
Please give your input and scrutinize at will. Share with anyone you like.
Maximum rate of interest; compound interest; effect of contract for excessive interest.
Section 1. No person, company, association or corporation shall directly or indirectly take or receive in money, goods or things in action, or in any other manner whatsoever, any greater sum or any greater value for the loan or forbearance or money, goods or things in action than at the rate of fourteen dollars upon one hundred dollars for one year; and in the computation of interest upon any bond, note, or other instrument or agreement, interest shall not be compounded, nor shall the interest thereon be construed to bear interest unless an agreement to that effect is clearly expressed in writing and signed by the party to be charged therewith. Any agreement or contract of any nature in conflict with the provisions of this section or section 2 thereafter shall be null and void as to any agreement or stipulation therein contained to pay interest and no action at law to recover interest in any sum shall be maintained and the debt cannot be declared due until the full period of time it was contracted for has elapsed.
Section 2. The only exceptions to the provisions in section 1 limiting the rate to fourteen dollar s for one year is the debt for the sum actually received from the use of an unsecured credit card and a loan received, not exceeding $2,000.00, from a licensed pawn shop. For such a debt for money received from the use of a credit card or from such a pawn shop loan and only from such a debt and loan the maximum rate of twenty dollars on one hundreds dollar for one year shall apply, together with all other provisions of section 1.
Section 3. every person, company, association or corporation, who for any loan or forbearance of money, goods or things in action shall have paid or delivered any greater sum or value than is allowed to be received under the preceding sections, one and two, may either in person or his or its personal representative, recover in an action at law against the person, company, association or corporation who shall have taken or received the same, or his or its personal representative, treble the amount of the money so paid or value delivered in violation of said sections, providing such action shall be brought within two years after such payment or delivery.
If you like this post, please remember to share it. If you are visiting from Stumble upon, please do me a favor and click the I like it! button. It will be much appreciated. Thanks for visiting.