What is the name of your state (only U.S. law)? Arkansas
Have you heard that myth that the world will end on precisely December 21, 2012, not because of nuclear warfare, but because of astrological reasons that are beyond our control? Well, my brother in law believes this, and it's getting annoying. I'm thinking about giving him a chance to put up or shut up. See, the way I'm picturing this is... I give him $100 now, and he gives me $1,000 on January 1, 2013. If he cannot cough up the dough on or before that exact date, interest starts piling like a credit card.
However, my state constitution has a usury clause in it, that sets a maximum interest rate of 17% for all credit contracts governed by that state's laws. This is the rate I plan to start charging on Jan. 2, 2013.
Well, if you do the math, nine hundred dollars has accumulated in just three and a half years, which is well over 17%. However, since, until Jan. 1, 2013, I am stating a percentage, but rather, a flat dollar amount, could that be a loophole to our contract? See, usury relates to percents, not dollar amounts. Could I use that as a loophole to have our contract valid?
Have you heard that myth that the world will end on precisely December 21, 2012, not because of nuclear warfare, but because of astrological reasons that are beyond our control? Well, my brother in law believes this, and it's getting annoying. I'm thinking about giving him a chance to put up or shut up. See, the way I'm picturing this is... I give him $100 now, and he gives me $1,000 on January 1, 2013. If he cannot cough up the dough on or before that exact date, interest starts piling like a credit card.
However, my state constitution has a usury clause in it, that sets a maximum interest rate of 17% for all credit contracts governed by that state's laws. This is the rate I plan to start charging on Jan. 2, 2013.
Well, if you do the math, nine hundred dollars has accumulated in just three and a half years, which is well over 17%. However, since, until Jan. 1, 2013, I am stating a percentage, but rather, a flat dollar amount, could that be a loophole to our contract? See, usury relates to percents, not dollar amounts. Could I use that as a loophole to have our contract valid?
), interest starts accumulating. It's not usury, but you need to check gambling laws for your state.