Except when otherwise permitted by law, any banker who discounts any note, bill of exchange, or draft at a higher rate of interest than eight percent per annum, not including the difference of exchange, cannot enforce the collection of the same, except as to principal; and if any interest has been paid, the same must be deducted from the principal and judgment entered for the balance only.
Structure Code of Alabama
Title 8 - Commercial Law and Consumer Protection.
Chapter 8 - Interest and Usury.
Section 8-8-1 - Maximum Rates of Interest - Generally.
Section 8-8-1.1 - Maximum Rates of Interest - Permitted Under State or Federal Law.
Section 8-8-1.2 - Maximum Rates of Interest - Loans Secured by Savings Accounts.
Section 8-8-8 - Interest Accrues on Breach of Contract.
Section 8-8-9 - Interest on Unauthorized Change Bills and Notes Not Exceeding $1.
Section 8-8-10 - Interest on Money Judgments and Costs.
Section 8-8-11 - Application of Partial Payments to Principal and Interest.
Section 8-8-12 - Enforcement of Usurious Contracts.
Section 8-8-15 - Bad Check Charge; Deemed Not Finance Charge.