Regarding Owed Interest

[Taxing Matters]

I think the borrower owes $1000. From my reading, the interest only accrued during May,June,July,August, and September of 2016, "each of 5 months after a one month Capital Placement Interest Accrual Moratorium (whatever that means) during a 6 month term. " No interest rate is specified beyond each of those five months.

I think you'll have a hard time collecting it.

The borrower would owe that if the interest rate in the contract did not violate the state usury law (again assuming Maryland law applies here). Violating the state usury law means that the creditor not only doesn't get to collect any interest but also owes the borrower a minimum of $500.

 

[Zigner]

I didn't write this promissory note. So it is evident that you're here for forum points rather than to assist. On the other hand, everyone else has been very helpful.

These terms were provided by the borrower for a real estate investment that I shouldn't have done in the first place. It is what it is. Thanks for the assistance everyone.

Bless your heart.

 

[not2cleverRed]

The borrower would owe that if the interest rate in the contract did not violate the state usury law (again assuming Maryland law applies here). Violating the state usury law means that the creditor not only doesn't get to collect any interest but also owes the borrower a minimum of $500.

In layman's terms, that seems to translates to: be happy you got the initial investment back, and don't press your luck going to small claims for the interest.

Would I be correct in understanding from what you have posted, TM, that had OP agreed to an annual rate of 20%, rather than a monthly rate of 20%, that OP might have had a legally enforceable agreement?

 

[Taxing Matters]

Would I be correct in understanding from what you have posted, TM, that had OP agreed to an annual rate of 20%, rather than a monthly rate of 20%, that OP might have had a legally enforceable agreement?

An annual rate of 20% might have been good.

 

[quincy]

Annual interest charged under some circumstances could be as high as 24% but 18% per annum would be typical.

(just passing through to collect forum points )

 

[Just Blue]

Annual interest charged under some circumstances could be as high as 24% but 18% per annum would be typical.

(just passing through to collect forum points )

I heard if you collect enough points then membership fees are waived.

 

[quincy]

I heard if you collect enough points then membership fees are waived.

I wondered if they were good for anything. I have just been stuffing them in my desk drawer.

 

[Taxing Matters]

I heard if you collect enough points then membership fees are waived.

What!? The points aren't redeemable for prizes? I had my eye on the awesome toaster....

 

[quincy]

What!? The points aren't redeemable for prizes? I had my eye on the awesome toaster....

I was sort of hoping for a puppy.

 

[Shadowbunny]

I was sort of hoping for a puppy.

I was eyeballing the tiara, but a puppy sounds like a much better use of my points. I need to get posting if I'm going to get that gorgeous German Shepherd!

 

[Taxing Matters]

I need to get posting if I'm going to get that gorgeous German Shepherd!

The toaster is fewer points and you don't have to feed it or take it to a vet....

 

[Just Blue]

I kind of want another kitten...

 

[Just Blue]

Where is the FA Shelter? Is it in San Fran?

 

[cbg]

I got an iPod with mine.

 

[Shadowbunny]

The toaster is fewer points and you don't have to feed it or take it to a vet....

Yeah, but I would look weird at the dog park with a toaster....