Code of Alabama
Ala. Code § 8-8-1 (2026)
Maximum Rates of Interest - Generally.
✓ official Alabama Legislature (ALISON) text, current July 2026
Except as otherwise provided by law, the maximum rate of interest upon the loan or forbearance of money, goods, or things in action, except by written contract is $6 upon $100 for one year, and the rate of interest by written contract is not to exceed $8 upon $100 for one year and at that rate for a greater or less sum or for a longer or shorter time.
(Code 1852, §1519; Code 1867, §1827; Code 1876, §2088; Code 1886, §1750; Code 1896, §2626; Code 1907, §4619; Code 1923, §8563; Acts 1935, No. 37, p. 69; Code 1940, T. 9, §60.)
Notes of Decisions
Cited in 54
cases (13 in the last 5 years), 1979–2026 · leading case: Alabama Dep't of Conservation & Nat. Resources v. Exxon Mobil Corp., 11 So. 3d 194 (Ala. 2008).
Alabama Dep't of Conservation & Nat. Resources v. Exxon Mobil Corp., 11 So. 3d 194 (Ala. 2008). “Burgess, however, considered the relationship between § § 8-8-1 (entitled "Maximum rates of interestGenerally") and 8-8-10 (entitled "Interest on money judgments and costs," as amended after the plaintiff's cause of action in Burgess accrued but before the circuit court's entry…”
Centennial Assocs., Ltd. v. Clark, 384 So. 2d 616 (Ala. 1980). “The trial court further held that the interest provisions and the note and mortgage were not usurious under Code 1975, §§ 8-8-1 and 8-8-2. Based on these two holdings, the trial court awarded Henry J.”
Meigs v. Est. of Mobley, 134 So. 3d 878 (Ala. Civ. App. 2013). “The estate set forth its proposal for determining the loan balance and maintained that the applicable rate of interest on the outstanding balance should be the 6% rate prescribed by § 8-8-1, Ala.Code 1975. The estate also filed a supplemental brief that states: “You asked that I…”
Jordan v. Reliable Life Ins. Co., 589 So. 2d 699 (Ala. 1991). “The federal district court awarded Carolyn Jordan the policy proceeds and interest at the "legal rate" prescribed by Ala.Code 1975, § 8-8-1, from the date she presented her claim to Reliable.”
Jim Hood v. JP Morgan Chase & Co., et a, 737 F.3d 78 (5th Cir. 2013). “excessive interest in violation of the common law usury doctrine' and violated 'Alabama Code § 8-8-1, et seq. by charging excessive interest.”
Ex Parte State Ex Rel. James, 711 So. 2d 952 (Ala. 1998). “[were] charging rates in excess of that allowed by Title 9, Section[s] 60 and 61, Code of Alabama 1940, Recompiled [current version at Ala.Code 1975, §§ 8-8-1 and -2]." 293 *961 Ala.”
AIG Baker Sterling Heights, LLC v. Am. Multi-Cinema, Inc., 508 F.3d 995 (11th Cir. 2007). “Baker has argued that the district court erred when it found that “Defendant AMC has already paid $539,375.75” of the arbitration award and reduced the balance due to Baker by that amount.”
Jefferson Cnty. Comm'n v. Edwards, 49 So. 3d 685 (Ala. 2010). “Code 1975, provides: "Judgments for the payment of money, other than costs, based upon a contract action, bear interest from the day of the cause of action, at the same rate of interest as stated in said contract; all other judgments shall bear interest at the rate of 12% per…”
Fuller v. Assocs. Com. Corp., 389 So. 2d 506 (Ala. 1980). “Fuller brought a class action counterclaim on behalf of all legal entities who had paid Associates a greater rate of interest for non-consumer loans than that allowed by Code 1975, § 8-8-1. Fuller also answered Associates' complaint by alleging that the finance charges…”
Mega Life & Health Ins. Co. v. Pieniozek, 585 F.3d 1399 (11th Cir. 2009). “No Error In Interest Rate Mega also argues on appeal that the district court erred in determining that the pre-judgment interest owed on the judg *1407 ment entered by the district court should be awarded at a rate of 6% under Ala.Code §§ 8-8-1 and 8-8-8. Mega claims that the…”
Ex Parte Brown, 562 So. 2d 485 (Ala. 1990). “Ala.Code 1975, § 8-8-1. IV. We next address the question of whether the majority stockholders have, by their actions, impermissibly squeezed out the minority stockholders.”
Williams v. Alabama Power Co., 730 So. 2d 172 (Ala. 1999). “I would have the parties address whether § 8-8-1 applies here in the absence of a specific statute setting a rate of prejudgment interest.”
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