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Utah Interest Rate Laws

Utah interest rate laws are stated in Utah Code, Title 15 (Contracts and Obligations in General), Chapter 1 (Interest).

Under Section 15-1-1, the state legal maximum interest rate is ten percent per annum in the absence of a contract specifying a different rate of interest.  Under Section 15-1-4, interest rate on money judgment is the federal post judgment interest rate as of January 1st of each year plus two percent.  If the judgment is based on a note or contract fixing another rate of interest, the interest will be same as agreed in the transaction.

Charging higher rate of interest than the permitted state legal maximum interest rate is usury.  Usury is considered a felony of third degree under Section 76-6-520.  Section 11-6-4 has exempted pawnbrokers from state prescribed interest rate.

Utah Code Ann. § 15-1-1 reads in part:

 “§ 15-1-1.  Interest rates — Contracted rate — Legal rate
   (1) The parties to a lawful contract may agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action that is the subject of their contract.
(2) Unless parties to a lawful contract specify a different rate of interest, the legal rate of interest for the loan or forbearance of any money, goods, or chose in action shall be 10% per annum.”


Utah Code Ann. § 15-1-4 reads in part:
 “§ 15-1-4.  Interest on judgments
   (1) As used in this section, “federal postjudgment interest rate” means the interest rate established for the federal court system under 28 U.S.C. Sec. 1961, as amended.
(2) (a) Except as provided in Subsection (2)(b), a judgment rendered on a lawful contract shall conform to the contract and shall bear the interest agreed upon by the parties, which shall be specified in the judgment.
   (b) A judgment rendered on a deferred deposit loan subject to Title 7, Chapter 23, Check Cashing and Deferred Deposit Lending Registration Act, shall bear interest at the rate imposed under Subsection (3) on an amount not exceeding the sum of:
      (i) the total of the principal balance of the deferred deposit loan;
      (ii) interest at the rate imposed by the deferred deposit loan agreement for a period not exceeding 12 weeks as provided in Subsection 7-23-401(4);
      (iii) costs;
      (iv) attorney fees; and
      (v) other amounts allowed by law and ordered by the court.
(3) (a) Except as otherwise provided by law, other civil and criminal judgments of the district court and justice court shall bear interest at the federal postjudgment interest rate as of January 1 of each year, plus 2%.”


Utah Code Ann. § 76-6-520 reads:
 “§ 76-6-520.  Criminal usury
   (1) A person is guilty of criminal usury when he knowingly engages in or directly or indirectly provides financing for the business of making loans at a higher rate of interest or consideration therefore than is authorized by law.
(2) Criminal usury is a felony of the third degree.”

Inside Utah Interest Rate Laws