Kansas Statutes Annotated

K.S.A. § 16-205 (2026)

Interest rates or charges; contract rates continue until payment in full; judgments; excess rates and charges void

✓ current as of May 2026

Find cases: SyfertCases citing this section KS-LEGkslegislature.org JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

16-205. Interest rates or charges; contract rates continue until payment in full; judgments; excess rates and charges void. (a) When a rate of interest or charges is specified in any contract, that rate shall continue until full payment is made, and any judgment rendered on any such contract shall bear the same rate of interest or charges mentioned in the contract, which rate shall be specified in the judgment; but in no case shall such rate or charges exceed the maximum rate or amount authorized by law, and any bond, note, bill, or other contract for the payment of money, which in effect provides that any interest or charges or any higher rate of interest or charges shall accrue as a penalty for any default, shall be void as to any such provision.

(b) Judgments taken in accordance with the provisions of subsection (a) shall be expressed as follows:

(1) Judgments upon interest-bearing contracts shall provide (i) the unpaid principal balance, (ii) the date to which interest is paid, (iii) the contract rate of interest and (iv) that the unpaid principal balance shall draw the contract rate of interest from the date to which interest is paid until payment in full.

(2) Judgments upon precomputed interest-bearing contracts shall provide: (i) The unpaid principal balance shall be ascertained by deducting from the remaining total of payments owed on the contract that portion of the precomputed finance charges that are unearned as of the date of acceleration of the maturity of the contract, as provided in K.S.A. 16a-2-510 for computing the unearned portion of precomputed finance charges in the event of prepayment in full. Any delinquency or deferral charges added to the unpaid balance subsequent to the date of acceleration shall be first deducted from the unpaid balance prior to any such acceleration. The contract shall be accelerated as of the date provided for in the provisions of the contract, or if the contract does not provide for the date on which the contract shall be accelerated, it shall be accelerated as of the actual date of any such acceleration; (ii) the date to which interest is paid, which date shall be the maturity date of the next installment due after the date of acceleration, except those contracts which are accelerated on an installment due date which shall be the date of acceleration; the date to which interest is paid for those contracts that have matured prior to judgment shall be calculated from maturity date of the contract; (iii) the contract rate of interest; and (iv) that the unpaid principal balance shall draw the contract rate of interest from the date to which interest is paid until payment in full.

(3) Judgments upon contracts where the finance charges are computed in dollars per hundred and added on to the original balance to be financed shall provide: (i) The unpaid principal balance shall be ascertained by deducting from the remaining total of payments owed on the contract that portion of the precomputed finance charges that are unearned as of the date of acceleration of the maturity of the contract as provided in K.S.A. 16a-2-510 for computing the unearned portion of precomputed finance charges in the event of prepayment in full. Any delinquency or deferral charges added to the unpaid balance subsequent to the date of acceleration shall be first deducted from the unpaid balance prior to any such acceleration. The contract shall be accelerated as of the date provided for in the provisions of the contract, or if the contract does not provide for the date on which the contract shall be accelerated, it shall be accelerated as of the actual date of any acceleration; (ii) the date to which interest is paid, which date shall be the maturity date of the next installment due after the date of acceleration, except those contracts which are accelerated on an installment due date which shall be the date of acceleration; the date to which interest is paid for those contracts that have matured prior to judgment shall be calculated from the maturity date of the contract; (iii) the contract rate of interest expressed as an annual percentage figure, which may be taken from the contract if it discloses the annual percentage rate, or it shall be ascertained in accordance with the constant ratio method which is mathematically expressed as follows:

2mc

R =

where

p(n + 1)

R = rate of charge

m = number of payment periods in one year

n = number of payments to discharge the debt

c = charge in dollars

p = principal or cash advanced

and (iv) that the unpaid principal balance shall draw the contract rate of interest as determined herein from the date to which interest is paid until payment in full.

History: L. 1889, ch. 164, § 5; R.S. 1923, 41-105; L. 1955, ch. 135, § 27; L. 1974, ch. 90, § 1; L. 1976, ch. 96, § 1; July 1.

Notes of Decisions

Cited in 15 cases, 1978–2019 · leading case: Wagnon v. Slawson Expl. Co., 874 P.2d 659 (Kan. 1994).

Sort: Relevance Newest Treatment

Wagnon v. Slawson Expl. Co., 874 P.2d 659 (Kan. 1994). · cites it 17× “The trial court granted summary judgment to the defendants, holding that K.S.A. 16-205 precludes a higher interest rate because of a nonmonetary default and, further, that the renewal note did not provide for the default interest rate in the event of a nonmonetary default.”

Ary Jewelers, L.L.C. v. Krigel, 85 P.3d 1151 (Kan. 2004). · cites it 3× “See K.S.A. 16-205(a). According to the district court, the agreed rate was that earned in interest-bearing securities backed by the U.”

Ram Co., Inc. v. Est. of Kobbeman, 696 P.2d 936 (Kan. 1985). · cites it 4× “" Since we have held equitable estoppel is inapplicable and there is no evidence of an agreement to abate interest herein, K.S.A. 16-205 does not apply and post-judgment interest is applicable.”

First Nat'l Bank of Olathe v. Clark, 602 P.2d 1299 (Kan. 1979). “K.S.A. 1978 Supp. 16-205(h)(2)(i) provides: “(2) Judgments upon precomputed interest-bearing contracts shall provide: (i) The unpaid principal balance shall be ascertained by deducting from the remaining total of payments owed on the contract that portion of the precomputed…”

Bob Eldridge Constr. Co. v. Pioneer Materials, Inc., 684 P.2d 355 (Kan. 1984). · cites it 2× “The trial court did not err in holding K.S.A. 16-205(a) requires the awarding of interest pursuant to the invoice terms.”

TMG Life Ins. v. Ashner, 898 P.2d 1145 (Kan. Ct. App. 1995). “Justice Abbott specifically stating: *256 “Where parties freely contract for a higher interest rate upon the occurrence of a default, whether monetary or nonmonetary, and that higher interest rate is not otherwise illegal and is prospective from the date of default and not…”

Sanders v. Park Towne, Ltd., 578 P.2d 1131 (Kan. Ct. App. 1978). “16-204 and K.S.A. 1977 Supp. 16-205. Plaintiffs concede the general principle that in actions based on fraud, post-judgment interest is usually computed at the statutory rate, but argue that in rare cases where the conduct is willful or wanton, the higher contract rate is…”

Scott v. Strickland, 691 P.2d 45 (Kan. Ct. App. 1984). “K.S.A. 16-205; Sanders, 2 Kan. App. 2d at 321 .”

J. Walters Constr. Co. v. Greystone South P'ship, L.P., 817 P.2d 201 (Kan. Ct. App. 1991). “” K.S.A. 16-205 states in part: “(a) When a rate of interest or charges is specified in any contract, that rate shall continue until full payment is made, and any judgment rendered on any such contract shall bear the same rate of interest or charges mentioned in the contract .”

Smyers v. Quartz Works Corp., 880 F. Supp. 1425 (D. Kan. 1995). · cites it 2× “Under Kansas law, parties to a contract may specify an interest rate to be charged in the event payment is not made on time, so long as the rate specified is not unreasonable or unconscionable: When a rate of interest or charges is specified in any contract, that rate shall…”

D.A.N. Jt. Venture III, L.P. v. Turk, 138 P.3d 1253 (Kan. Ct. App. 2006). · cites it 6× “16a-2-510(2) provides: “If the maturity [of a consumer credit trans *359 action] is accelerated for any reason and judgment is obtained, the judgment shall be taken in accordance with the provisions of K.S.A. 16-205 . . . Thus, the district court was correct in determining DAN…”

Law Co. Bldg. Assocs. v. Law, 444 P.3d 376 (Kan. Ct. App. 2019). · cites it 6× “As stated above, she argues the late charge is not prejudgment interest, so K.S.A. 16-205 applies, not K.S.A. 16-201.”

Show all 15 citing cases →

— K.S.A. § 16-205(a) — 10 cases

Wagnon v. Slawson Expl. Co., 874 P.2d 659 (Kan. 1994). “The trial court granted summary judgment to the defendants, holding that K.S.A. 16-205 precludes a higher interest rate because of a nonmonetary default and, further, that the renewal note did not provide for the default interest rate in the event of a nonmonetary default.”

Ary Jewelers, L.L.C. v. Krigel, 85 P.3d 1151 (Kan. 2004). “See K.S.A. 16-205(a). According to the district court, the agreed rate was that earned in interest-bearing securities backed by the U.”

Ram Co., Inc. v. Est. of Kobbeman, 696 P.2d 936 (Kan. 1985). “" Since we have held equitable estoppel is inapplicable and there is no evidence of an agreement to abate interest herein, K.S.A. 16-205 does not apply and post-judgment interest is applicable.”

Bob Eldridge Constr. Co. v. Pioneer Materials, Inc., 684 P.2d 355 (Kan. 1984). “The trial court did not err in holding K.S.A. 16-205(a) requires the awarding of interest pursuant to the invoice terms.”

— K.S.A. § 16-205(b)(1) — 1 case

D.A.N. Jt. Venture III, L.P. v. Turk, 138 P.3d 1253 (Kan. Ct. App. 2006). “16a-2-510(2) provides: “If the maturity [of a consumer credit trans *359 action] is accelerated for any reason and judgment is obtained, the judgment shall be taken in accordance with the provisions of K.S.A. 16-205 . . . Thus, the district court was correct in determining DAN…”

— K.S.A. § 16-205(b)(l) — 1 case

— K.S.A. § 16-205(c) — 1 case

— K.S.A. § 16-205(h)(2)(i) — 1 case

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.