H.B. 238

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INTEREST RATE MAXIMUM ON CONTRACTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Carl R. Saunders
5 AN ACT RELATING TO CONTRACTS AND OBLIGATIONS IN GENERAL; CAPPING
6 INTEREST RATES FOR CONTRACTS; AND MAKING TECHNICAL CORRECTIONS.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 15-1-1, as last amended by Chapter 79, Laws of Utah 1989
10 70C-2-101, as enacted by Chapter 159, Laws of Utah 1985
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 15-1-1 is amended to read:
13 15-1-1. Interest rates -- Contracted rate -- Legal rate.
14 (1) [The] (a) Except as provided in Subsection (1)(b), the parties to a lawful contract may
15 agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action
16 that is the subject of their contract.
17 (b) For any lawful contract entered into on or after May 5, 1997, the rate of interest for the
18 loan or forbearance may not exceed 36%.
19 (2) Unless parties to a lawful contract specify a different rate of interest in accordance with
20 Subsection (1), the legal rate of interest for the loan or forbearance of any money, goods, or chose
21 in action shall be 10% per annum.
22 (3) Nothing in this section may be construed in any way to affect any penalty or interest
23 charge that by law applies to delinquent or other taxes or to any contract or obligations made
24 before May 14, 1981.
25 Section 2. Section 70C-2-101 is amended to read:
26 70C-2-101. Finance and other charges.
27 Except [where] when restricted or otherwise covered by provisions of this title or Section

1 15-1-1, the parties to a consumer credit agreement may contract for payment by the debtor of any
2 finance charge and other charges and fees.




Legislative Review Note
as of 1-16-97 8:30 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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