Mass. Gen. Laws » Part IV Title I Chapter 271

Mass. Gen. Laws ch. 271, § 49

Criminal usury

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Section 49. (a) Whoever in exchange for either a loan of money or other property knowingly contracts for, charges, takes or receives, directly or indirectly, interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned or the equivalent rate for a longer or shorter period, shall be guilty of criminal usury and shall be punished by imprisonment in the state prison for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment. For the purposes of this section the amount to be paid upon any loan for interest or expenses shall include all sums paid or to be paid by or on behalf of the borrower for interest, brokerage, recording fees, commissions, services, extension of loan, forbearance to enforce payment, and all other sums charged against or paid or to be paid by the borrower for making or securing directly or indirectly the loan, and shall include all such sums when paid by or on behalf of or charged against the borrower for or on account of making or securing the loan, directly or indirectly, to or by any person, other than the lender, if such payment or charge was known to the lender at the time of making the loan, or might have been ascertained by reasonable inquiry.

(b) Whoever, with knowledge of the contents thereof, possesses any writing, paper, instrument or article used to record a transaction proscribed under the provisions of paragraph (a) shall be punished by imprisonment in a jail or house of correction for not more than two and one half years, or by a fine of not more than five thousand dollars, or by both such fine and imprisonment.

(c) Any loan at a rate of interest proscribed under the provisions of paragraph (a) may be declared void by the supreme judicial or superior court in equity upon petition by the person to whom the loan was made.

(d) The provisions of paragraph (a) to (c), inclusive, shall not apply to any person who notifies the attorney general of his intent to engage in a transaction or transactions which, but for the provisions of this paragraph, would be proscribed under the provisions of paragraph (a) providing any such person maintains records of any such transaction. Such notification shall be valid for a two year period and shall contain the person's name and accurate address. No lender shall publicly advertise the fact of such notification nor use the fact of such notification to solicit business, except that such notification may be revealed to an individual upon his inquiry. Illegal use of such notification shall be punished by a fine of one thousand dollars. Such records shall contain the name and address of the borrower, the amount borrowed, the interest and expenses to be paid by the borrower, the date the loan is made and the date or dates on which any payment is due. Any such records shall be made available to the attorney general for the purposes of inspection upon his request. Such records and their contents shall be confidential but may be used by the attorney general, or any district attorney with the approval of the attorney general, for the purposes of conducting any criminal proceeding to which such records or their contents are relevant.

(e) The provisions of this section shall not apply to any loan the rate of interest for which is regulated under any other provision of general or special law or regulations promulgated thereunder or to any lender subject to control, regulation or examination by any state or federal regulatory agency.

Notes of Decisions
Cited in 79 cases (9 in the last 5 years), 1976–2041 · leading case: Begelfer v. Najarian
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Begelfer v. Najarian (1980) mass · cites it 11× “G. L. c. 271, § 49. The plaintiffs seek a declaration that a promissory note executed by them is void because the defendants’ exercise of their rights under the default provision caused the interest and expenses to exceed twenty per cent a year and the defendants failed to…”
Tavares v. Sprunk (In Re Tavares) (2003) mab · cites it 11× “The Debtor, in her four count Amended Complaint, averred that the loan made to her by Sprunk violated the Massachusetts Criminal Usury Statute, Mass. Gen. Laws ch. 271, § 49 (West 2000)(“G.”
Clean Harbors, Inc. v. John Hancock Life Insurance (2005) massappct · cites it 4× “(Clean Harbors), appeals from summary judgment entered in favor of the defendant lenders (collectively, “John Hancock”) on Clean Harbors’s claims that the “make whole amount” charged by the defendants upon Clean Harbors’s early repayment of a loan was improper, and that certain…”
Cannarozzi v. Fiumara (2004) ca1 · cites it 6× “The district court correctly assumed that if the loans in question were enforceable under the Massachusetts criminal usury statute, Mass. Gen. Laws ch. 271, § 49 , then Fiumara deserved summary judgment.”
Beach Associates, Inc. v. Fauser (1980) massappct · cites it 5× “4 The loan is within the scope of G. L. c. 271, § 49, as amended by St. 1971, c.”
Allegheny International Credit Corp. v. Bio-Energy of Lincoln, Inc. (1985) massappct · cites it 7× “The most troublesome claim made by the defendants is that the transaction is in reality a loan and is a violation of G. L. c. 271, § 49. 6 That statute, set forth in part in the margin, 7 requires that any person who *160 charges more than twenty percent a year as interest and…”
Fustolo v. 50 Thomas Patton Drive, LLC (2016) ca1 “7 million due on the Guaranteed- Notes is disputed as to amount, claiming that Patton Drive is not entitled to the Guaranteed Notes’ full default interest rate of 35% because Patton Drive failed to timely submit a required “usury notification form” to the state attorney general…”
Williams v. Resolution GGF Oy (1994) mass · cites it 2× “See G.L.c. 271, § 49. This same document in the record, dated October 8, 1986, also reveals that the defendant's approval of the loan was subject to the following condition, among others: "First [mortgage] to be current and not to exceed $36K [$36,000].”
In Re White (1988) mab · cites it 3× “The claimant denied the note was usurious but conceded that the requisite filing with the attorney general pursuant to Mass. Gen.Laws ch. 271, § 49 had not been made.”
Goldsmith v. Massad (In re Fiorillo) (2013) mab · cites it 2× “Mass. Gen. Laws ch. 271 § 49(a). Such loans may be declared void.”
Pena v. Gonzalez (Pena) (2008) bap1 · cites it 3× “The Appellee filed a complaint alleging that, without his knowledge, the Appellants charged interest on the three loans at a rate known as 18% add-on, 5 which violated the Massachusetts usury statute ( Mass. Gen. Laws ch. 271, § 49 ), and that the Appellants’ acts constituted…”
In re Loucheschi LLC (2012) mab · cites it 4× “The Massachusetts criminal usury statute, Mass. Gen. Laws ch. 271, § 49 caps the allowable amount of interest and expenses that a lender may charge a borrower at 20%.”
Show all 79 citing cases →
— Mass. Gen. Laws ch. 271, § 49(a) — 17 cases
Goldsmith v. Massad (In re Fiorillo) (2013) mab “Mass. Gen. Laws ch. 271 § 49(a). Such loans may be declared void.”
Beach Associates, Inc. v. Fauser (1980) massappct “4 The loan is within the scope of G. L. c. 271, § 49, as amended by St. 1971, c.”
Nasif v. Palladino (In re Palladino) (2016) mab
Commonwealth v. Lewis (1999) massappct
Tavares v. Sprunk (In Re Tavares) (2003) mab “The Debtor, in her four count Amended Complaint, averred that the loan made to her by Sprunk violated the Massachusetts Criminal Usury Statute, Mass. Gen. Laws ch. 271, § 49 (West 2000)(“G.”
— Mass. Gen. Laws ch. 271, § 49(b) — 1 case
Schwartz v. Levensailor (2002) masssuperct
— Mass. Gen. Laws ch. 271, § 49(c) — 8 cases
Clean Harbors, Inc. v. John Hancock Life Insurance (2005) massappct “(Clean Harbors), appeals from summary judgment entered in favor of the defendant lenders (collectively, “John Hancock”) on Clean Harbors’s claims that the “make whole amount” charged by the defendants upon Clean Harbors’s early repayment of a loan was improper, and that certain…”
Beach Associates, Inc. v. Fauser (1980) massappct “4 The loan is within the scope of G. L. c. 271, § 49, as amended by St. 1971, c.”
Tavares v. Sprunk (In Re Tavares) (2003) mab “The Debtor, in her four count Amended Complaint, averred that the loan made to her by Sprunk violated the Massachusetts Criminal Usury Statute, Mass. Gen. Laws ch. 271, § 49 (West 2000)(“G.”
Albano v. City National Bank of Connecticut (1981) massappct
Blunsden v. Marks (2001) masssuperct
— Mass. Gen. Laws ch. 271, § 49(d) — 9 cases
Goldsmith v. Massad (In re Fiorillo) (2013) mab “Mass. Gen. Laws ch. 271 § 49(a). Such loans may be declared void.”
Beach Associates, Inc. v. Fauser (1980) massappct “4 The loan is within the scope of G. L. c. 271, § 49, as amended by St. 1971, c.”
201 Forest Street LLC v. LBM Financial LLC (In Re 201 Forest Street LLC) (2009) mab
Levites v. Chipman (1991) massappct
Albano v. City National Bank of Connecticut (1981) massappct
— Mass. Gen. Laws ch. 271, § 49(e) — 3 cases
Beach Associates, Inc. v. Fauser (1980) massappct “4 The loan is within the scope of G. L. c. 271, § 49, as amended by St. 1971, c.”
Tavares v. Sprunk (In Re Tavares) (2003) mab “The Debtor, in her four count Amended Complaint, averred that the loan made to her by Sprunk violated the Massachusetts Criminal Usury Statute, Mass. Gen. Laws ch. 271, § 49 (West 2000)(“G.”
Colletti v. Massachusetts Automatic Transmissions, Inc. (In Re Massachusetts Automatic Transmissions, Inc.) (1983) mab
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