(a) Except as otherwise permitted by law, all contracts for the payment of interest upon the loan or forbearance of goods, money, things in action, or upon any contract whatever at a higher rate than is prescribed in this chapter are usurious and cannot be enforced except as to the principal.
(b) The borrower of money at a usurious rate of interest shall not in any case be required to pay more than the principal sum borrowed, and if any interest has been paid, the same must be deducted from the principal and judgment entered for the balance only; provided, however, that the defense of usury may not be pleaded against a holder in due course of any negotiable instrument.
(Code 1852, §1523; Code 1867, §1831; Code 1876, §2092; Code 1886, §1754; Code 1896, §2630; Code 1907, §4623; Code 1923, §8567; Acts 1931, No. 650, p. 783; Code 1940, T. 9, §65.)
Notes of Decisions
Meigs v. Est. of Mobley, 134 So. 3d 878 (Ala. Civ. App. 2013).
· cites it 2× “” Section 8-8-12 provides: "(a) Except as otherwise permitted by law, all contracts for the payment of interest upon the loan or forbearance of goods, money, things in action, or upon any contract whatever at a higher rate than is prescribed in this chapter are usurious and…”
Patterson v. Green, 474 So. 2d 725 (Ala. Civ. App. 1985).
· cites it 2× “” It is clear from the above that, if the trial court believed the testimony of the plaintiff regarding the eight percent per year interest on the loan, the court was bound to follow § 8-8-1 and § 8-8-12(b), finding that no interest could be charged on the principal.”
— Ala. Code § 8-8-12(b) — 2 cases
Meigs v. Est. of Mobley, 134 So. 3d 878 (Ala. Civ. App. 2013).
“” Section 8-8-12 provides: "(a) Except as otherwise permitted by law, all contracts for the payment of interest upon the loan or forbearance of goods, money, things in action, or upon any contract whatever at a higher rate than is prescribed in this chapter are usurious and…”
Patterson v. Green, 474 So. 2d 725 (Ala. Civ. App. 1985).
“” It is clear from the above that, if the trial court believed the testimony of the plaintiff regarding the eight percent per year interest on the loan, the court was bound to follow § 8-8-1 and § 8-8-12(b), finding that no interest could be charged on the principal.”
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