Mont. Code Ann. » TITLE 31. CREDIT TRANSACTIONS AND RELATIONSHIPS · CHAPTER 1. CREDIT TRANSACTIONS · Part 1. Loans of Money -- Interest Rates
Montana Code Annotated

Mont. Code Ann. § 31-1-108 (2026)

Penalty For Usury -- Action To Recover Excessive Interest

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 31
  3. CHAPTER 1
  4. Part 1
  5. 31-1-108 Penalty for usury -- action to recover excessive interest

TITLE 31. CREDIT TRANSACTIONS AND RELATIONSHIPS

CHAPTER 1. CREDIT TRANSACTIONS

Part 1. Loans of Money -- Interest Rates

Penalty For Usury -- Action To Recover Excessive Interest

31-1-108. Penalty for usury -- action to recover excessive interest. (1) The taking, receiving, reserving, or charging a rate of interest greater than is allowed by 31-1-107 must be considered a forfeiture of a sum double the amount of interest that the note, bill, or other evidence of debt carries or that has been agreed to be paid on the note, bill, or other evidence of debt.

(2) When a greater rate of interest has been paid, the person by whom it has been paid or the person's heirs, assigns, executors, or administrators may recover from the person, firm, or corporation taking, receiving, reserving, or charging interest a sum double the amount of interest paid, provided that the action must be brought within 2 years after the payment of the interest, and provided that, before any suit may be brought to recover the usurious interest, the party bringing suit makes written demand for return of the interest paid.

History: En. Sec. 2, Ch. 36, L. 1913; re-en. Sec. 7727, R.C.M. 1921; re-en. Sec. 7727, R.C.M. 1935; R.C.M. 1947, 47-126; amd. Sec. 969, Ch. 56, L. 2009.

Notes of Decisions
Cited in 16 cases (3 in the last 5 years), 1983–2025 · leading case: E.C.A Env't Mgmt. Servs., Inc. v. Toenyes, 679 P.2d 213 (Mont. 1984).
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E.C.A Env't Mgmt. Servs., Inc. v. Toenyes, 679 P.2d 213 (Mont. 1984). · cites it 9× “Did the trial court correctly determine the statutory usury penalty of Section 31-1-108, MCA, in allowing interest on the demand note to accrue up to the date of trial? 3.”
Rustics of Lindbergh Lake, Inc. v. Lease, 690 P.2d 440 (Mont. 1984). · cites it 12× “The court based its ruling on two grounds, that the agreement to pay 17 percent interest on the open account, distinguished from the promissory note, was part of a bonafide sale and purchase agreement, and that no counter-claim was filed seeking the affirmative relief of Section…”
Aldrich & Co. v. Ellis, 2002 MT 177 (Mont. 2002). · cites it 4× “The Ellises therefore argued Aldrich's motion for summary judgment should be denied and they should be allowed to amend the pleadings to add a claim for recovery of usurious interest pursuant to § 31-1-108, MCA. In their motion to amend the pleadings, the Ellises alleged Aldrich…”
Hanson v. Bonner, 661 P.2d 421 (Mont. 1983). · cites it 6× “Applying section 31-1-108, MCA, the District Court determined that double the amount of interest charged and other charges, left a balance due to the Bonners from Hanson of $1,561.”
Scarr v. Boyer, 818 P.2d 381 (Mont. 1991). · cites it 6× “Section 31-1-108, MCA. Five hundred and fourteen days elapsed between April 25, 1989, and the date during pre-trial proceedings when Scarr finally abandoned his claim to 18 percent interest.”
Confederated Tribes of Grand Ronde Cmty. v. Quantum Five, Inc., 2004 MT 140 (Mont. 2004). · cites it 10× “¶11 Section 31-1-108, MCA, authorizes the assessment of a penalty for usury and an action to recover excessive interest.”
Samson v. W. Capital Partners LLC (In re Blixseth), 489 B.R. 154 (Bankr. D. Mont. 2013). · cites it 9× “1993), Judge Hatfield held: MontCode Ann. § 31-1-108, provides that a party commits usury if it engages in the: “taking, receiving, reserving, or charging a rate of interest greater than is allowed by 31-1-107.”
Poulsen's, Inc. v. Wood, 756 P.2d 1162 (Mont. 1988). · cites it 3× “is usurious on its face in violation of Sections 31-1-106 and 31-1-107 MCA and the defendant is entitled to recover from the plaintiff the penalty for usury provided by Section 31-1-108, MCA.” On May 7, 1987, pursuant to Rule 56, M.”
Chabot v. Washington Mut. Bank (In Re Chabot), 369 B.R. 1 (Bankr. D. Mont. 2007). · cites it 2× “The undisputed facts are that Chabot made only a single payment on her loan, which closed in 2002, and so not only is her claim for usury barred by the two-year statute of limitations because she did not file her complaint until 2005, but any recovery under state or federal law…”
Olympic Coast Inv., Inc. v. Wright (In Re Wright), 256 B.R. 626 (Bankr. D. Mont. 2000). · cites it 6× “1993), Judge Hatfield held: MontCode Ann. § 31-1-108, provides that a party commits usury if it engages in the: “taking, receiving, reserving, or charging a rate of interest greater than is allowed by 31-1-107-” This statute applies in the disjunctive.”
Direct Mail Specialist, Inc. v. Brown, 673 F. Supp. 1540 (D. Mont. 1987). · cites it 2× “The penalty for taking, receiving, reserving or charging an interest greater than allowed is “a forfeiture of a sum double the amount of interest which the note .”
Brummer v. TMG Life Ins. (In Re Brummer), 147 B.R. 552 (Bankr. D. Mont. 1992). “Under either scenario applied on the unsecured portion of the claim, the Debtor has extricated himself from any possible usury payment by his own spreading proposal.”
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Mont. Code Ann. § 31-1-108(1): 4 cases
Rustics of Lindbergh Lake, Inc. v. Lease, 690 P.2d 440 (Mont. 1984). “The court based its ruling on two grounds, that the agreement to pay 17 percent interest on the open account, distinguished from the promissory note, was part of a bonafide sale and purchase agreement, and that no counter-claim was filed seeking the affirmative relief of Section…”
Samson v. W. Capital Partners LLC (In re Blixseth), 489 B.R. 154 (Bankr. D. Mont. 2013). “1993), Judge Hatfield held: MontCode Ann. § 31-1-108, provides that a party commits usury if it engages in the: “taking, receiving, reserving, or charging a rate of interest greater than is allowed by 31-1-107.”
Confederated Tribes of Grand Ronde Cmty. v. Quantum Five, Inc., 2004 MT 140 (Mont. 2004). “¶11 Section 31-1-108, MCA, authorizes the assessment of a penalty for usury and an action to recover excessive interest.”
Olympic Coast Inv., Inc. v. Wright (In Re Wright), 256 B.R. 626 (Bankr. D. Mont. 2000). “1993), Judge Hatfield held: MontCode Ann. § 31-1-108, provides that a party commits usury if it engages in the: “taking, receiving, reserving, or charging a rate of interest greater than is allowed by 31-1-107-” This statute applies in the disjunctive.”
Mont. Code Ann. § 31-1-108(2): 3 cases
Rustics of Lindbergh Lake, Inc. v. Lease, 690 P.2d 440 (Mont. 1984). “The court based its ruling on two grounds, that the agreement to pay 17 percent interest on the open account, distinguished from the promissory note, was part of a bonafide sale and purchase agreement, and that no counter-claim was filed seeking the affirmative relief of Section…”
Chabot v. Washington Mut. Bank (In Re Chabot), 369 B.R. 1 (Bankr. D. Mont. 2007). “The undisputed facts are that Chabot made only a single payment on her loan, which closed in 2002, and so not only is her claim for usury barred by the two-year statute of limitations because she did not file her complaint until 2005, but any recovery under state or federal law…”
Peter Matthew Dale & Maive Rita Dale (Bankr. D. Mont. 2021).
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