If a lender on one state lends to a borrower in another state, which state’s usury laws establish the interest rate limit?
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If a lender on one state lends to a borrower in another state, which state’s usury laws establish the interest rate limit?
Asked on January 21, 2013 under Bankruptcy Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Good question. The laws of the state where the contract for the loan was entered into controls. Ordinarily the loan agreement evidenced by a promissory note will state where the contract for the money was entered into. If not, then the contract is entered into where the last person who signs the document for the loan is located.
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