All bonds, bills, notes, mortgages, and all other contracts and securities, and all deposits of goods, or any other thing, whereupon or whereby there shall be reserved, secured, or taken any greater sum or value for the loan or forbearance of any money, goods, or things in action than prescribed, except such instruments which are taken or received in accordance with and in reliance upon the provisions of any statute, shall be void except as to a holder in due course. No merely clerical error in the computation of interest, made without intent to avoid the provisions of this chapter, shall constitute usury. Interest at the rate of 1/12 of eight percent for every 30 days shall not be construed to exceed eight percent per annum; nor shall the payment of interest in advance of one year, or any less time, at a rate not exceeding eight percent per annum constitute usury; and nothing herein shall prevent the purchase of negotiable mercantile paper, usurious or otherwise, for a valuable consideration, by a purchaser without notice, at any price before the maturity of the same, when there has been no intent to evade the provisions of this chapter, or where such purchase has not been a part of the original usurious transactions; but where the original holder of a usurious note sells the same to an innocent purchaser, the maker thereof, or the maker's representatives, may recover back from the original holder the amount of principal and interest paid on the note. This section does not apply when the loan or forbearance is made by a lender and the lender is subject to section 47.59 or 48.196 or chapter 56 in connection with the loan or forbearance. For purposes of this section, the term "lender" means a bank or savings bank organized under the laws of this state, a federally chartered savings association or savings bank, a savings association organized under chapter 51A, a federally chartered credit union, a credit union organized under chapter 52, an industrial loan and thrift company organized under chapter 53, a licensed lender under chapter 56, or a mortgagee or lender approved or certified by the secretary of housing and urban development or approved or certified by the administrator of veterans affairs.
Notes of Decisions
Cited in
14
cases, 1944–2010 · leading case:
Barton v. Moore, 558 N.W.2d 746 (Minn. 1997).
Barton v. Moore, 558 N.W.2d 746 (Minn. 1997).
· cites it 28× “Minn.Stat. § 334.03 (1996). Thus, borrowers on loans found to be usurious under section 334.”
Dietz v. Phipps (In Re Sunde), 149 B.R. 552 (Bankr. D. Minn. 1992).
· cites it 6× “Minn. Stat. § 334.03 provides, in pertinent part, that: All .”
Maus v. Toder, 681 F. Supp. 2d 1007 (D. Minnesota 2010).
· cites it 5× “See Minn. Stat. §§ 334.03 & 334.05; Barton, 558 N.”
Katz & Lange, Ltd. v. Beugen, 356 N.W.2d 733 (Minn. Ct. App. 1984).
· cites it 4× “Did Katz charge a usurious interest rate within the meaning of Minn.Stat. § 334.03 (1982)? 2. Whether, upon the record submitted, the trial court’s finding of the reasonable value of the legal services is clearly erroneous? ANALYSIS Interest of 12% per annum was billed by Katz…”
United Realty Trust v. Prop. Dev. & Rsch. Co., 269 N.W.2d 737 (Minn. 1978).
· cites it 2× “Under § 334.03, the note and mortgage were void if the loan was usurious, and URT would have no interest in the mortgaged property and no right to either interest accrued or principal.”
Trapp v. Hancuh, 530 N.W.2d 879 (Minn. Ct. App. 1995).
· cites it 2× “; see also Minn.Stat. § 334.03 (1988) (providing for avoidance of usurious bonds, bills, notes, mortgages, and all other contracts and securities).”
Holisak v. Nw. Nat'l Bank of St. Paul, 210 N.W.2d 413 (Minn. 1973).
· cites it 5× “01, as qualified by § 334.03. We affirm. The controlling issue is whether the 365/360 method of interest computation, which results in an actual interest yield slightly in excess of an 8-percent annual rate, is authorized by state law.”
Seebold v. Eustermann, 13 N.W.2d 739 (Minn. 1944).
“True, § 334.03 declares the usurious contract void except in the hands of a bona fide purchaser, but permits the maker who has paid such bona fide purchaser to recover from the usurer what he may have paid in principal or interest to the bona fide purchaser.”
Linne v. Ronkainen, 37 N.W.2d 237 (Minn. 1949).
· cites it 2× “” Section 334.03 provides in part as follows: “All * * * notes * * * whereby there shall be reserved, secured, or taken any greater sum or value for the loan * * * than herein-before prescribed, shall be void * * Defendant paid the installments due September 1, 1943, and October…”
Jones v. Nelson, 432 N.W.2d 792 (Minn. Ct. App. 1988).
· cites it 2× “See Minn. Stat. § 334.03 (1974). They also argued that they were entitled to recover all interest payments.”
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