What is the name of your state? TX
I am going to sell a small business and want to draw up a promissory note for the buyer so that he can pay me the balance after a down payment. In Texas, the maximum interest rate allowed is 18% per annum. How does compounding interest fit in with regards to usury laws? Would I be allowed to compound this interest in any way? If not, then how do credit card companies get away with this (just as a general question)? Thanks.
I am going to sell a small business and want to draw up a promissory note for the buyer so that he can pay me the balance after a down payment. In Texas, the maximum interest rate allowed is 18% per annum. How does compounding interest fit in with regards to usury laws? Would I be allowed to compound this interest in any way? If not, then how do credit card companies get away with this (just as a general question)? Thanks.