Missouri Revised Statutes

Mo. Rev. Stat. § 408.030 (2026)

Interest, maximum rate allowed

✓ current as of May 2026

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408.030. Interest, maximum rate allowed — penalty for overcharge, limitation on action for — "market rate" to be determined, when, how — discounting to financial organizations authorized. — 1. Parties may agree, in writing, to a rate of interest not exceeding ten percent per annum on money due or to become due upon any contract, including a contract for commitment; except that, when the "market rate" exceeds ten percent per annum, parties may agree, in writing, to a rate of interest not exceeding the "market rate". A contract for commitment to lend money shall not exceed the maximum lawful rate in effect on the date of such contract. A loan entered into pursuant to a valid contract for commitment shall not exceed the maximum lawful rate in effect on the date of such commitment. The "market rate" for any calendar quarter shall be equal to the monthly index of long term United States government bond yields for the second preceding calendar month prior to the beginning of the calendar quarter plus an additional three percentage points rounded off to the nearest tenth of one percent. Calendar quarters begin on January first, April first, July first, and October first.

2. If a rate of interest greater than permitted by law is paid, the person paying the same or his legal representative may recover twice the amount of the interest thus paid, provided that the action is brought within five years from the time when said interest should have been paid. The person so adjudged to have received a greater rate of interest shall also be liable for the costs of the suit, including a reasonable attorney's fee to be determined by the court.

3. On or before the twentieth day of the last month of each calendar quarter the director of the division of finance shall determine the monthly index of long term United States government bond yields for the second month of that quarter and shall determine the market rate for the next succeeding quarter. The director of the division of finance shall cause such market rate to be posted pursuant to section 361.110 and to be published in appropriate publications; such market rate to be effective on the first day of the next succeeding calendar quarter.

4. Any bank, trust company or savings and loan association may purchase any note, bill of exchange, or other evidence of debt, payable in installments or otherwise, regardless of where payable, at a price that may be agreed upon.

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(RSMo 1939 § 3227, A.L. 1974 2d Ex. Sess. S.B. 1, A.L. 1979 S.B. 305)

Prior revisions: 1929 § 2840; 1919 § 6492; 1909 § 7180

Effective 7-03-79

(1960) Equipment was purchased and chattel mortgage given therefor which recited that the time price of the equipment was a specific amount, and stated that the purchaser would pay to the order of the creditor in thirty-six monthly installments the total amount of the time price, the transaction was not usurious notwithstanding the difference between the cash price and the time price was considerably in excess of the 8% interest allowed by statute. Wyatt v. Commercial Credit Corp. (A.), 341 S.W.2d 348.

Notes of Decisions

Cited in 35 cases (1 in the last 5 years), 1954–2026 · leading case: Wilner v. O'donnell, 637 S.W.2d 757 (Mo. Ct. App. 1982).

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Wilner v. O'donnell, 637 S.W.2d 757 (Mo. Ct. App. 1982). · cites it 19× “Thus, the maximum lawful rate of interest was found to be 10% per year under § 408.030 RSMo Supp. 1975. The court determined what the monthly payments would be to amortize a $25,000 loan over a three year period at 8% per year, and at 10% per year.”

Addison v. Jester, 758 S.W.2d 454 (Mo. Ct. App. 1988). · cites it 12× “6%, See § 408.030. Prior to November, 1985, no complaint had been made to respondent that the rate of interest on the note exceeded the allowable statutory maximum.”

Garrett v. Citizens Sav. Ass'n, 636 S.W.2d 104 (Mo. Ct. App. 1982). · cites it 16× “At the time of the loan, § 408.030, RSMo 1969 was in effect, which stated: The parties may agree, in writing, for the payment of interest, not exceeding eight *108 percent per annum, on money due or to become due upon any contract.”

Julian v. Burrus, 600 S.W.2d 133 (Mo. Ct. App. 1980). · cites it 13× “00 from June 2,1970 to August 18,1972, in violation of Section 408.030 RSMo 1969 creating a cause of action in Administra-trix-plaintiff to recover excess interest under § 408.”

Est. of Bruce v. Bruce, 767 S.W.2d 598 (Mo. Ct. App. 1989). · cites it 14× “The probate court allowed the claim, but, *599 because of § 408.030 RSMo 1986, allowed only a ten percent rate of interest.”

Mitchell v. Residential Funding Corp., 334 S.W.3d 477 (Mo. Ct. App. 2011). · cites it 3× “§ 408.030. A loan that charges more than the maximum interest rate is usurious.”

Killion v. Bank Midwest, N.A., 886 S.W.2d 29 (Mo. Ct. App. 1994). · cites it 8× “Section 408.030, RSMo 1986, provides that parties can agree to a maximum rate of interest in the amount of 10% or the market rate, whichever is greater.”

Seaton v. City of Lexington, 97 S.W.3d 72 (Mo. Ct. App. 2002). · cites it 13× “97-35, which increased sewer charges and was passed without voter approval, violates the Hancock Amendment, (2) the penalty provision of the ordinance constitutes a usurious interest rate in violation of section 408.030, RSMo 2000, and (3) the City improperly applies the penalty…”

U.S. Life Title Ins. Co. v. Brents, 676 S.W.2d 839 (Mo. Ct. App. 1984). · cites it 4× “1984 as amended (which for convenience we will call “the residential second mortgage law”), controls the permissible interest rate, or § 408.030, RSMo Supp. 1984 (amended 1979).”

State ex rel. Crist v. Nationwide Fin. Corp. of Missouri, 588 S.W.2d 8 (Mo. Ct. App. 1979). · cites it 7× “The Commissioner charged that Nationwide violated the usury law interest ceiling set forth in § 408.030 by making at least 133 loans to various customers at rates of interest in excess of 10 percent per annum.”

Redd v. Household Fin. Corp., 622 S.W.2d 255 (Mo. Ct. App. 1981). · cites it 6× “Redd alleged the execution of separate agreements which exacted interest in excess of the maximum allowed by § 408.030 with each of the following defendants: 1 Household Finance Corporation, hereinafter HFC, Nationwide Finance Corporation of Missouri, hereinafter Nationwide,…”

Lincoln Credit Co. v. Peach, 636 S.W.2d 31 (Mo. 1982). “) The title of the original Senate Bill 305 was as follows: An Act [t]o repeal sections 408.030, 408.050, 408.060, and 408.”

Show all 35 citing cases →

— Mo. Rev. Stat. § 408.030(2) — 1 case

Wilner v. O'donnell, 637 S.W.2d 757 (Mo. Ct. App. 1982). “Thus, the maximum lawful rate of interest was found to be 10% per year under § 408.030 RSMo Supp. 1975. The court determined what the monthly payments would be to amortize a $25,000 loan over a three year period at 8% per year, and at 10% per year.”

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