Louisiana Revised Statutes & Codes
La. Rev. Stat. § 9:3503 (2026)
Maximum rate of conventional interest on certain loans
✓ current as of May 2026
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§3503. Maximum rate of conventional interest on certain loans
Unless otherwise provided, the amount of simple conventional interest on obligations bearing interest from date and secured in whole or in part, directly or indirectly, by a mortgage on immovable property, shall not exceed twelve percent per annum. The same must be fixed in writing. Testimonial proof of it is not admitted in any case.
Acts 1969, No. 28, §2. Amended by Acts 1979, No. 205, §1, eff. July 6, 1979; Acts 1995, No. 1184, §2.
Notes of Decisions
Cited in 19
cases, 1973–2017 · leading case: Spencer v. Boucher, 587 So. 2d 97 (La. Ct. App. 1991).
Spencer v. Boucher, 587 So. 2d 97 (La. Ct. App. 1991). “1 LSA-R.S. 9:3503 provides that the amount of simple conventional interest on obligations bearing interest from date and secured in whole or in part, directly or indirectly, by a mortgage on immovable property; shall not exceed 12 percent per annum.”
Coffey v. Peoples Mortg. & Loan of Shreveport, 408 So. 2d 1153 (La. Ct. App. 1981). “), defendant contends that the transaction should be governed by that law which allows a higher rate of interest than does LRS 9:3503.”
Roccaforte v. Comm'r, 77 T.C. 263 (Tax Ct. 1981). “The lawful rate of interest permissible under Louisiana law on obligations secured by a mortgage on real property was 10 percent during 1973.”
Blanchard v. Progressive Bank & Trust Co., 413 So. 2d 589 (La. Ct. App. 1982). “R.S. 9:3503. [3] The president of the defendant bank testified that he knew the 11% rate was usurious.”
Voitier v. First Nat'l Bank of Com., 514 F. Supp. 585 (E.D. La. 1981). “At the time of these loans, LSA-R.S. 9:3503 permitted a maximum interest rate *588 of 10% on loans secured by a written mortgage on immovable property.”
Plan Investments of New Orleans, Inc. v. Harris, 405 So. 2d 1094 (La. Ct. App. 1980). “This appeal raises the issue of whether the interest charged on a loan secured by a mortgage on immovable property is usurious, dependent upon the applicability of R.S. 9:3503, Civil Code Art. 2924, or R.S.”
O'Halleron v. Lec, Inc., 471 So. 2d 752 (La. Ct. App. 1985). “R.S. 9:3503, 3504, 3509 and 3510 et seq. Accordingly, the issue of whether interest charged in a bond for deed contract is usurious presents a different issue than whether the same interest rate is usurious when provided for in a contract of an entirely different nature.”
Thrift Funds of Baton Rouge, Inc. v. Jones, 274 So. 2d 150 (La. 1973). “Act 454 of 1972 amendment amended paragraphs 6 (commercial discount loans) and 7 (capitalized interest loans) to make them inapplicable to consumer credit transactions which after January 1, 1973 are regulated by the Louisiana Consumer Credit Law, La.”
Arnold v. Hancock, 950 So. 2d 911 (La. Ct. App. 2007). “R.S. 9:3503 provides that the amount of simple conventional interest on a note secured by a mortgage on immovable property cannot exceed twelve percent per annum.”
Bamburg v. Lavigne, 403 So. 2d 827 (La. Ct. App. 1981). “LRS 9:3503. The annual interest that was paid and accepted in 1979 and in 1980, when the note was paid in full, exceeded the maximum conventional interest rate and was usurious.”
Floyd v. Baton Rouge Sash & Door Co., 502 So. 2d 1073 (La. 1987). “R.S. 9:3503 set a twelve percent maximum interest rate on loans generally.”
Ganus v. Jopes, 470 So. 2d 237 (La. Ct. App. 1985). “R.S. 9:3503 permitted conventional interest on secured loans of 10%, from date.”
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