The taking, receiving, reserving or charging a greater rate of interest than permitted by this chapter or other applicable law, either before or after the interest may accrue, when knowingly done, shall be a forfeiture of the entire interest which the note or other evidence of debt carries with it, or which has been agreed to be paid thereon. And in case a greater rate of interest has been paid, the person or his legal representatives or corporation by whom it has been paid, may recover back twice the amount of interest paid in an action in the nature of action for debt. In any action brought in any court of competent jurisdiction to recover upon any such note or other evidence of debt, it is lawful for the party against whom the action is brought to plead as a counterclaim the penalty above provided for, to wit, twice the amount of interest paid as aforesaid, and also the forfeiture of the entire interest. If security has been given for an usurious loan and the debtor or other person having an interest in the security seeks relief against the enforcement of the security or seeks any other affirmative relief, the debtor or other person having an interest in the security shall not be required to pay or to offer to pay the principal plus legal interest as a condition to obtaining the relief sought but shall be entitled to the advantages provided in this section. Nothing contained in this section or in G.S. 24-1, however, shall be held or construed to prohibit private corporations from paying a commission on or for the sale of their coupon bonds, nor from selling such bonds for less than the par value thereof. (1876-7, c. 91; Code, s. 3836; 1895, c. 69; 1903, c. 154; Rev., s. 1951; C.S., s. 2306; 1955, c. 1196; 1959, c. 110; 1969, c. 1303, s. 3.)
Notes of Decisions
Swindell v. Fed. Nat'l Mortg. Ass'n, 409 S.E.2d 892 (N.C. 1991).
· cites it 24× “The question central to this appeal is how the penalty for usury under N.C.G.S. § 24-2 applies to a late payment charge that exceeds the maximum rate permitted under N.”
Shepard v. Ocwen Fed. Bank, FSB, 617 S.E.2d 61 (N.C. Ct. App. 2005).
· cites it 6× “Plaintiffs brought their action alleging the loan origination fee, charged by defendant and rolled back into plaintiff's high-end second mortgage loan was usurious and illegal under Chapter 24.”
Kessing v. Nat'l Mortg. Corp., 180 S.E.2d 823 (N.C. 1971).
· cites it 3× “The penalty for charging a greater rate of interest than permitted by law, either before or after the interest accrues, when knowingly done, shall be a forfeiture of the entire interest which the note or other evidence of debt carries with it.”
Adams v. Beard Dev. Corp., 446 S.E.2d 862 (N.C. Ct. App. 1994).
· cites it 20× “N.C. Gen. Stat. § 24-2 (1991). Thus, under this statute, there are two statutory penalties for usury: (1) the entire amount of interest due is subject to forfeiture, and (2) the debtor may recover twice the amount of interest paid.”
Crow v. Citicorp Acceptance Co., Inc., 354 S.E.2d 459 (N.C. 1987).
· cites it 3× “Finally, the plaintiffs sought double damages under N.C.G.S. § 24-2, North Carolina’s general usury statute.”
Faircloth v. Nat'l Home Loan Corp., 313 F. Supp. 2d 544 (M.D.N.C. 2003).
· cites it 4× “2d 892, 895, 897 (1991) (applying the penalties of N.C. Gen. Stat. § 24-2 to a violation of N.”
State Ex Rel. Cooper v. NCCS Loans, Inc., 624 S.E.2d 371 (N.C. Ct. App. 2005).
· cites it 2× “” And, under N.C. Gen. Stat. § 24-2 (2003), the penalty for charging a higher interest rate than permitted by law is “forfeiture of the entire interest .”
In Re Foreclosure of a Deed of Trust Executed by Bradburn, 681 S.E.2d 828 (N.C. Ct. App. 2009).
· cites it 4× “N.C. Gen. Stat. § 24-2 (2007) 3 Initially, “the taint of usury made the contract void both as to principal and interest, into whosoever hands it might come, and so likewise any appearance, shift or device whereupon or whereby an illegal rate of interest was received or taken was…”
Haanebrink v. Meyer, 267 S.E.2d 598 (N.C. Ct. App. 1980).
· cites it 3× “G.S. 24-2 on the penalty for usury provides in pertinent part: The taking, receiving, reserving or charging a greater rate of interest than permitted by this chapter or other applicable law, either before or after the interest may accrue, when knowingly done, shall be a…”
Com. Credit Corp. v. Robeson Motors, 90 S.E.2d 886 (N.C. 1956).
· cites it 8× “1-137, which prescribes the causes of action that may be alleged by way of counterclaim, must be considered in answering the question presented. G.S. 24-2, in pertinent part, provides: .”
McClendon v. Walter Home Mortg. (In re McClendon), 488 B.R. 876 (Bankr. E.D.N.C. 2013).
· cites it 10× “For damages, the penalty in North Carolina for loans deemed usurious is set forth in N.C. Gen.Stat. § 24-2. The statute reads in part: The taking, receiving, reserving or charging a greater rate of interest than permitted by this chapter or other applicable law, either before or…”
Equilease Corp. v. Belk Hotel Corp., 256 S.E.2d 836 (N.C. Ct. App. 1979).
· cites it 4× “Nevertheless, plaintiff contends that under the circumstances of this case we should not find that it possessed the requisite corrupt intent to subject it to the penalties provided in G.S. 24-2. Plaintiff argues that the excess interest charged was not exorbitant under either…”
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