31-1-107. Interest rate allowed by agreement. (1) Parties may agree in writing to the payment of any rate of interest that does not exceed the greater of 15% or an amount that is 6 percentage points per year above the prime rate published by the federal reserve system in its statistical release H.15 Selected Interest Rates for bank prime loans dated 3 business days prior to the execution of the agreement. Interest must be allowed according to the terms of the agreement.
(2) A loan that is not usurious when made is lawful for the duration of the loan, provided the loan agreement is not substantially changed. This subsection does not apply to loan renewals.
(3) The provisions of this section do not apply to regulated lenders as defined in 31-1-111.
History: En. Sec. 2586, Civ. C. 1895; re-en. Sec. 5212, Rev. C. 1907; amd. Sec. 1, Ch. 36, L. 1913; amd. Sec. 1, Ch. 62, L. 1919; re-en. Sec. 7726, R.C.M. 1921; Cal. Civ. C. Sec. 1918; re-en. Sec. 7726, R.C.M. 1935; amd. Sec. 1, Ch. 503, L. 1975; R.C.M. 1947, 47-125; amd. Sec. 2, Ch. 373, L. 1979; amd. Sec. 4, Ch. 275, L. 1981; amd. Sec. 1, Ch. 9, L. 1983; amd. Sec. 1, Ch. 567, L. 1983; amd. Sec. 1, Ch. 588, L. 1993; amd. Sec. 2, Ch. 108, L. 2011.
Structure Montana Code Annotated
Title 31. Credit Transactions and Relationships
Chapter 1. Credit Transactions
Part 1. Loans of Money -- Interest Rates
31-1-101. Loan of money -- what constitutes
31-1-102. Loan to be repaid in current money
31-1-103. Loan presumed to be on interest
31-1-107. Interest rate allowed by agreement
31-1-108. Penalty for usury -- action to recover excessive interest
31-1-109. When interest becomes part of principal
31-1-111. Definition of regulated lender
31-1-112. Interest rate limitation exemption -- regulated lenders -- merchant finance
31-1-113. Limitation of rule of 78ths
31-1-115. Issuing credit cards to minors -- collection of debt
31-1-116. Commercial loans -- when written agreement required