Georgia Code
Article 1 - In General
§ 7-4-17. Payment Applied First to Interest; No Interest on Unpaid Interest; Exceptions

When a payment is made upon any debt, it shall be applied first to the discharge of any interest due at the time, and the balance, if any, shall be applied to the reduction of the principal. If the payment does not extinguish the interest then due, no interest shall be calculated on such balance of interest and interest shall be calculated only on the principal amount up to the time of the next payment. Notwithstanding the foregoing restrictions against charging interest on unpaid interest:
History. Orig. Code 1863, § 2028; Code 1868, § 2029; Code 1873, § 2055; Code 1882, § 2055; Civil Code 1895, § 2883; Civil Code 1910, § 3433; Code 1933, § 57-109; Ga. L. 1982, p. 420, §§ 1, 2; Ga. L. 1984, p. 949, § 6; Ga. L. 1995, p. 956, § 1.
Law reviews.
For article discussing methods of computation of finance charges in Georgia consumer credit contracts, see 30 Mercer L. Rev. 281 (1978).
For article on Georgia’s usury laws and interest on interest, see 8 Ga. St. U.L. Rev. 291 (1992).

Structure Georgia Code

Georgia Code

Title 7 - Banking and Finance

Chapter 4 - Interest and Usury

Article 1 - In General

§ 7-4-1. “Usury” Defined

§ 7-4-2. Legal Rate of Interest; Maximum Rate of Interest Generally; Certain Items Not Considered Interest

§ 7-4-3. Finance Charge on Retail Installment Contracts for Manufactured Homes and Motor Vehicles Subject to Federal Law; Stating of Federal Provisions in Contract

§ 7-4-4. Advertisement of Rates of Interest or Finance Charge

§ 7-4-5. Failure to Include Federal Loan Act Provisions in Retail Installment Loan; Violating Advertising Restrictions

§ 7-4-8. Commission to Third Person Does Not Make Lawful Interest Usurious

§ 7-4-9. Back Interest May Be Stipulated in Contract and Recovered

§ 7-4-10. Usury Forfeits Entire Interest; Right of Setoff; How Forfeiture Discharged; When Time Bars Action or Defense

§ 7-4-11. Usury Is Personal Defense; No Collection From Insolvent to Prejudice of Others

§ 7-4-12. Interest on Judgments

§ 7-4-12.1. Interest on Arrearage on Child Support; Settlement of Unreimbursed Public Assistance

§ 7-4-13. Law of Place of Contract Governs Interest Unless Otherwise Provided

§ 7-4-14. Interest Runs From Default Unless Otherwise Agreed; When Demand Necessary

§ 7-4-15. When Interest Runs on Liquidated Demands; Promissory Notes Payable on Demand

§ 7-4-16. When Interest Runs on Commercial Accounts; Maximum Interest Rate on Commercial Accounts

§ 7-4-17. Payment Applied First to Interest; No Interest on Unpaid Interest; Exceptions

§ 7-4-18. Criminal Penalty for Excessive Interest

§ 7-4-19. Civil Action to Enforce Chapter

§ 7-4-20. Election to Forgo Application of Federal Usury Laws

§ 7-4-21. Class Action Barred on Claims for Violation of Interest Laws on Loans Secured by Real Estate