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Mississippi Interest Rate Laws

Mississippi governs the rate of interest in the state through Mississippi Code Title 75 (Regulation of Trade, Commerce and Investments) under the provisions of Chapter 17 (Interest, Finance Charges, and Other Charges).  Section 75-17-1 of this Chapter prescribes the legal rate of interest as eight percent (8%) per annum.  A borrower or debtor may contract for a rate not exceeding the greater of ten percent (10%) per annum or five percent (5%) per annum above the discount rate.  The rate of interest on any judgment or decree based on a contract action will be the same rate prescribed in the contract.  In all other judgments or decrees, the interest rate is set by the judge at a per annum rate.  These rates on judgments and decrees are prescribed in Section 75-17-7.

By the authority of Section 75-67-119, usurious interests and finance charges will be forfeited and can be recovered.  If any such rates or charges exceed the maximum authorized by law by more than one hundred percent (100%), then the principal and the interest/charges will be forfeited and the amount already paid can be recovered.  Persons who violate the usury law will be  guilty of a misdemeanor and, upon conviction be punished by a fine not exceeding One Thousand Dollars ($ 1,000.00) and not less than One Hundred Dollars ($ 100.00), in the discretion of the court.  The court is also empowered to revoke the license of such persons.

Residential real property loans and any contract, loan, extension of credit or other obligation by any partnership, joint venture, religious society, unincorporated association, or domestic or foreign corporation, whether organized for profit or nonprofit may charge rates that exceed the legal limit set for interest rates.  Section 75-17-1 prescribes the limitations for this exception.  Section 75-17-23 provides that the rate of interest in connection with the sales of factory manufactured moveable homes may be greater than the legal limit.  However, this rule is subject to the prescribed rates in this Section.

Miss. Code Ann. § 75-17-1

Legal rates of interest and finance charges
(1) The legal rate of interest on all notes, accounts and contracts shall be eight percent (8%) per annum, calculated according to the actuarial method, but contracts may be made, in writing, for payment of a finance charge as otherwise provided by this section or as otherwise authorized by law.
(2) Any borrower or debtor may contract for and agree to pay a finance charge for any loan or other extension of credit made directly or indirectly to a borrower or debtor which will result in a yield not to exceed the greater of ten percent (10%) per annum or five percent (5%) per annum above the discount rate, excluding any surcharge thereon, on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the lender is located, each calculated according to the actuarial method. The rate of finance charge authorized under this subsection (2) shall be known as the “contract rate.”

(3) Notwithstanding the foregoing and any other provision of law to the contrary, any partnership, joint venture, religious society, unincorporated association, or domestic or foreign corporation, whether organized for profit or nonprofit, may contract for and agree to pay a finance charge which will result in a yield not to exceed the greater of fifteen percent (15%) per annum or five percent (5%) per annum above the discount rate, excluding any surcharge thereon, on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the lender is located, each calculated according to the actuarial method, on any contract, loan, extension of credit or other obligation under which the principal balance to be repaid shall originally exceed Two Thousand Five Hundred Dollars ($ 2,500.00), or on any series of advances of money pursuant to a contract if the aggregate of sums advanced or originally proposed to be advanced shall exceed Two Thousand Five Hundred Dollars ($ 2,500.00); and as to any such agreement, the claim or defense of usury by such partnership, joint venture, religious society, unincorporated association, or corporation, or their successors, guarantors, assigns or anyone on their behalf is prohibited.

(4) Notwithstanding the foregoing and any other provision of law to the contrary, any borrower or debtor may contract for and agree to pay a finance charge which will result in a yield not to exceed the greater of ten percent (10%) per annum or five percent (5%) per annum above the index of market yields of the Monthly Twenty-Year Constant Maturity Index of Long-Term United States Government Bond Yields, as compiled by the United States Treasury Department, each calculated according to the actuarial method, on any loan, mortgage or advance which is secured by a lien on residential real property or by a lien on stock in a residential cooperative housing corporation where the loan, mortgage or advance is used to finance the acquisition of such stock. The term “residential real property,” as used in this subsection, means real estate upon which there is located or to be located a structure or structures designed in whole or in part for residential use, or which comprises or includes one or more apartments, condominium units or other dwelling units.

Miss. Code Ann. § 75-17-7

Interest on judgments and decrees
All judgments or decrees founded on any sale or contract shall bear interest at the same rate as the contract evidencing the debt on which the judgment or decree was rendered. All other judgments or decrees shall bear interest at a per annum rate set by the judge hearing the complaint from a date determined by such judge to be fair but in no event prior to the filing of the complaint.

Miss. Code Ann. § 75-17-23

Maximum finance charges in connection with sales of factory manufactured moveable homes
Notwithstanding any provision of law to the contrary, the maximum finance charge which may be contracted for or received for any loan or extension of credit made by any lender or by any retail seller in connection with sales of factory manufactured moveable homes may result in a yield not to exceed the following annual percentage rates calculated according to the actuarial method:
(a) Twenty-five percent (25%) per annum on that part of the unpaid balance of the amount financed which does not exceed One Thousand Dollars ($ 1,000.00);
(b) Eighteen percent (18%) per annum on that part of the unpaid balance of the amount financed which is more than One Thousand Dollars ($ 1,000.00) but does not exceed Two Thousand Five Hundred Dollars ($ 2,500.00);
(c) The greater of fifteen percent (15%) per annum or five percent (5%) per annum above the discount rate, excluding any surcharge thereon, on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the lender or retail seller is located, on that part of the unpaid balance of the amount financed which is more than Two Thousand Five Hundred Dollars ($ 2,500.00).

Miss. Code Ann. § 75-67-119

Penalties for imposition of excessive finance charges
If any finance charge in excess of that expressly permitted by Section 75-17-21 is contracted for or received, all finance charges and other charges shall be forfeited and may be recovered, whether the contract be executed or executory. If any finance charge is contracted for or received that exceeds the maximum finance charge authorized by law by more than one hundred percent (100%), the principal and all finance charges and other charges shall be forfeited and any amount paid may be recovered by suit; and, in addition, the licensee and the several members, officers, directors, agents, and employees thereof who shall have participated in such violation shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($ 1,000.00) and not less than One Hundred Dollars ($ 100.00), in the discretion of the court; and, further, the Commissioner of Banking and Consumer Finance shall forthwith cite such licensee to show cause why its license should not be revoked and proceedings thereon shall be as is specifically provided in the Small Loan Privilege Tax Law (Section 75-67-201 et seq.).


Inside Mississippi Interest Rate Laws