Usury

The practice of charging an illegally high or excessive interest rate on a loan. Each state sets maximum allowable interest rates, and exceeding them can void the loan or result in penalties.

Used in these documents:

Promissory Note Loan Agreement

Related Terms:

Promissory Note

A written promise to pay a specific amount of money to a specific person or entity by a certain date. It includes the principal amount, interest rate (if any), payment schedule, and consequences of default.

Disclaimer

This definition is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for specific guidance.