Laws of Massachusetts Title XV, Chapter 107 Section 3 prescribe the legal rate of interest as six percent (6 %) per annum. Higher rates can be agreed upon in writing.
Persons who receive or charge usurious interest that exceeds an amount greater than twenty percent (20 %) per annum upon the sum loaned will be guilty of criminal usury and will be subject to imprisonment for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment. This provision dealing with criminal usury and its punishment is provided in Section 49 of Chapter 271. The person to whom such a usurious loan is made may petition the supreme judicial or superior court in equity to declare the loan void.
In an order for judgment made for pecuniary damages in a civil action, the clerk of the court can add to the amount of damages, interest at the rate of twelve percent (12 %) per annum from the date of commencement of the action. This rate of interest on the judgment is provided in Section 6B of Chapter 231. In an action upon contract, the rate of interest on the judgment will be the rate agreed in the contract, if it is established and if not at the rate of twelve percent (12 %) per annum from the date of commencement of the action. This rate on contract actions is prescribed in Section 6C of this Chapter.
Under Section 96 of Chapter 140, loans of six thousand dollars or less can charge an interest rate not exceeding twelve percent (12 %) per annum. Pursuant to Section 114 B of this Chapter, a rate of interest not exceeding eighteen percent (18 %) can be charged for Open End Credit Transactions. A rate of interest higher than the legal maximum can be charged on life insurance policy loans pursuant to Section 142 of Chapter 175.
ALM GL ch. 107, § 3
Rate of Interest.
If there is no agreement or provision of law for a different rate, the interest of money shall be at the rate of six dollars on each hundred for a year, but, except as provided in sections seventy-eight, ninety, ninety-two, ninety-six and one hundred of chapter one hundred and forty, it shall be lawful to pay, reserve or contract for any rate of interest or discount. No greater rate than that before mentioned shall be recovered in a suit unless the agreement to pay it is in writing.
ALM GL ch. 271, § 49
Criminal Usury; Possession of Usurious Instrument; Penalties; Exceptions.
(a) Whoever in exchange for either a loan of money or other property knowingly contracts for, charges, takes or receives, directly or indirectly, interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned or the equivalent rate for a longer or shorter period, shall be guilty of criminal usury and shall be punished by imprisonment in the state prison for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment.
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(c) Any loan at a rate of interest proscribed under the provisions of paragraph (a) may be declared void by the supreme judicial or superior court in equity upon petition by the person to whom the loan was made.
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ALM GL ch. 231, § 6B
Interest from Date of Commencement of Action Added to Damages Awarded in Certain Civil Actions.
In any action in which a verdict is rendered or a finding made or an order for judgment made for pecuniary damages for personal injuries to the plaintiff or for consequential damages, or for damage to property, there shall be added by the clerk of the court to the amount of damages interest thereon at the rate of twelve per cent per annum from the date of commencement of the action even though such interest brings the amount of the verdict or finding beyond the maximum liability imposed by law.
ALM GL ch. 231, § 6C
Interest Added to Damages in Contract Actions.
In all actions based on contractual obligations, upon a verdict, finding or order for judgment for pecuniary damages, interest shall be added by the clerk of the court to the amount of damages, at the contract rate, if established, or at the rate of twelve per cent per annum, from the date of the breach or demand. If the date of the breach or demand is not established, interest shall be added by the clerk of court, at such contractual rate, or at the rate of twelve per cent per annum from the date of the commencement of the action, provided, however, that in all actions based on contractual obligations, upon a verdict, finding or order for judgment against the commonwealth for pecuniary damages, interest shall be added by the clerk of the court to the amount of damages, at the contract rate, if established, or at a rate calculated pursuant to the provisions of section six I from the date of the breach or demand. If the date of the breach or demand is not established, such interest shall be added by the clerk of the court from the date of the commencement of the action.
ALM GL ch. 231, § 6F
Award of Costs and Counsel Fees in Insubstantial, Frivolous or Bad Faith Actions.
Upon motion of any party in any civil action in which a finding, verdict, decision, award, order or judgment has been made by a judge or justice or by a jury, auditor, master or other finder of fact, the court may determine, after a hearing, as a separate and distinct finding, that all or substantially all of the claims, defenses, setoffs or counterclaims, whether of a factual, legal or mixed nature, made by any party who was represented by counsel during most or all of the proceeding, were wholly insubstantial, frivolous and not advanced in good faith. The court shall include in such finding the specific facts and reasons on which the finding is based.
If such a finding is made with respect to a party’s claims, the court shall award to each party against whom such claims were asserted an amount representing the reasonable counsel fees and other costs and expenses incurred in defending against such claims. If the party against whom such claims were asserted was not represented by counsel, the court shall award to such party an amount representing his reasonable costs, expenses and effort in defending against such claims. If such a finding is made with respect to a party’s defenses, setoffs or counterclaims, the court shall award to each party against whom such defenses, setoffs or counterclaims were asserted (1) interest on the unpaid portion of the monetary claim at issue in such defense, setoff or counterclaim at one hundred and fifty per cent of the rate set in section six C from the date when the claim was due to the claimant pursuant to the substantive rules of law pertaining thereto, which date shall be stated in the award, until the claim is paid in full; and (2) an amount representing the reasonable counsel fees, costs and expenses of the claimant in prosecuting his claims or in defending against those setoffs or counterclaims found to have been wholly insubstantial, frivolous and not advanced in good faith.
Apart from any award made pursuant to the preceding paragraph, if the court finds that all or substantially all of the defenses, setoffs or counterclaims to any portion of a monetary claim made by any party who was represented by counsel during most or all of the proceeding were wholly insubstantial, frivolous and not advanced in good faith, the court shall award interest to the claimant on that portion of the claim according to the provisions of the preceding paragraph.
ALM GL ch. 140, § 96
Business of Making Small Loans Defined and Regulated.
No person shall directly or indirectly engage in the business of making loans of six thousand dollars or less, if the amount to be paid on any such loan for interest and expenses exceeds in the aggregate an amount equivalent to twelve per cent per annum upon the sum loaned, without first obtaining from the commissioner of banks, in sections ninety-six to one hundred and fourteen, inclusive, called the commissioner, a license to carry on the said business in the town where the business is to be transacted.
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ALM GL ch. 140, § 114B
Maximum Finance Charges for Open End Credit Transactions.
Notwithstanding the provisions of sections ninety A, one hundred, and one hundred and fourteen A, a creditor may charge a daily, monthly or other periodic rate of finance charge on loans made pursuant to any open-end credit plan as defined by section one of chapter one hundred and forty D, equivalent to but not in excess of eighteen percent determined in accordance with paragraph (2) of subsection (a) of section five of said chapter one hundred and forty D; provided, however, that no finance or other charge shall begin to accrue until the date upon which payment has been made by the creditor on any transaction under any such open-end credit plan; and, provided further, that if the index rate for any calendar quarter, as hereinafter determined, exceeds eighteen percent, the creditor may, during such calendar quarter, charge such daily, monthly or other periodic rate or rates as may be established by such creditor.
ALM GL ch. 175, § 142
Loans on Policies.
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(3) Such policy shall contain a provision permitting (a), an interest rate on such loan of not more than eight per cent per annum; or (b) a provision permitting an adjustable maximum interest rate on such loan established from time to time by the insurer in accordance with the provisions of subsection (4).
(4) The rate of interest charged on a policy loan made under clause (b) of subsection (3) shall not exceed the higher of either: (a) the published monthly average for the calendar month ending two months before the date on which the rate is determined; or (b) the rate used to compute the cash surrender values under the policy during the applicable period plus one per cent per annum.
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