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Originally Posted by Roguish Lawyer

Not.

Counsellor,
Is that usury is not illegal, or it's not illegal in virtual Jefe-land, or 2400% is not usury? Or some combination thereof. Here's a quick search from 'Lectric Law Library:

Many state's laws provide that you cannot lend money at an interest rate
in excess of a certain statutory maximum. This is a "usury limit."
Unless Otherwise Stated, The Rates Are Simple, Not Compound Interest.
Further We Are Stating The **Present** Limits, the ones applicable at
the time that this research was completed. Many states have had lower
limits in the past.Further, in most states a late charge or other fee
exacted from someone who owes another money is also counted as interest.

"But my car loan is higher than that"; "But I'm paying way more than
that on my credit cards." That's right! Banks have separate rules. In
fact, due to high inflation, in 1980, the federal government passed a
special law which allowed national banks (the ones that have the word
"national" or the term "N.A." in their name, and savings banks that are
federally chartered) to ignore state usury limits and pegged the rate of
interest at a certain number of points above the federal reserve
discount rate. In addition, specially chartered organizations like small
loan companies and installment plan sellers (like car financing
companies) have their own rules.

The usury limit which is stated as the general usury limit is the rate
that can be charged by one person or corporation to another, in other
words, if you lend your next door neighbor $ 100.00, the rate stated is
the limit. To charge more you must get a banking, pawnbroking, or
whatever license. This also means that special kinds of loans, like
those from pawnbrokers or small loan companies are not stated.

In some states we also have a "legal rate." In such states, as a general
rule, if you have a contractual obligation that provides simply for
interest without a specific term, or "interest at the highest legal
rate" then the "legal rate" what applies. In other instances we have
stated a "judgment rate." That's the rate that final judgments bear. In
states without a usury limit, there still may be a federally imposed
limit because at certain astronomical rates of interest "loan sharking"
will be inferred by the federal government.

Usury Is A Complicated Area Of Law. Transactions that a person would not
consider to be affected by usury often are, for example, repurchase
agreements, or sales with an option to repurchase are often found to be
loans. A word of caution. Before trying to lend someone money or
"invest" with a guaranteed return, see an attorney to make sure that you
don't run afoul of the usury laws. In state's that specify one limit for
consumers and one limit for non-consumers, you cannot avoid the usury
limit by creating a sham business deal. In a supplement that is now
being prepared and will be available soon, we will review the penalties
for usury in each state and point out special circumstances in each
state.

ALABAMA, the legal rate of interest is 6%; the general usury limit is
8%. The judgment rate is 12%.

ALASKA, the legal rate of interest is 10.5%; the general usury limit
is more than 5% above the Federal Reserve interest rate on the day
the loan was made.

ARIZONA, the legal rate of interest is 10%.

ARKANSAS, the legal rate of interest is 6%; for non-consumers the
usury limit is 5% above the Federal Reserve's interest rate; for
consumers the general usury limit is 17%. Judgments bear interest at
the rate of 10% per annum, or the lawful agreed upon rate, whichever
is greater.

CALIFORNIA, the legal rate of interest is 10% for consumers; the
general usury limit for non-consumers is more than 5% greater than
the Federal Reserve Bank of San Francisco's rate.

COLORADO, the legal rate of interest is 8%; the general usury limit
is 45%. The maximum rates to consumers is 12% per annum.

CONNECTICUT, the legal rate of interest is 8%; the general usury rate
is 12%. In civil suits where interest is allowed, it is allowed at
10%.

DELAWARE, the legal rate of interest is 5% over the Federal Reserve
rate.

DISTRICT OF COLUMBIA, the legal rate of interest is 6%; the general
usury limit is in excess of 24%.

FLORIDA, the legal rate of interest is 12%; the general usury limit
is 18%. On loans above $ 500,000 the maximum rate is 25%.

GEORGIA, the legal rate of interest is 7%; On loans below $ 3,000 the
usury limit is 16%. On loans above $ 3,000, the limit appears to be
5% per month. As to loans below $ 250,000 the interest rate must be
specified in simple interest and in writing.

HAWAII, the legal rate of interest is 10%. The usury limit for
consumer transactions is 12%.

IDAHO, the legal rate of interest is 12%. Judgments bear interest at
the rate of 5% above the U.S. Treasury Securities rate.

ILLINOIS, the legal rate of interest is 5%. The general usury limit
is 9%. The judgment rate is 9%.

INDIANA, the legal rate of interest is 10%. Presently there is no
usury limit; however, legislation is pending to establish limits. The
judgment rate is also 10%.

IOWA, the legal rate of interest is 10%. In general consumer
transactions are governed at a maximum rate of 12%.

KANSAS, the legal rate of interest is 10%; the general usury limit is
15%. Judgments bear interest at 4% above the federal discount rate.
On consumer transactions, the maximum rate of interest for the first
$ 1,000 is 18%, above $ 1,000, 14.45%.

KENTUCKY, the legal rate of interest is 8%; the general usury limit
is more than 4% greater than the Federal Reserve rate or 19%,
whichever is less. On loans above $ 15,000 there is no limit.
Judgments bear interest at the rate of 12% compounded yearly, or at
such rate as is set by the Court.

LOUISIANA, the legal rate of interest is one point over the average
prime rate, not to exceed 14% nor be less than 7%. Usury limit for
individuals is 12%, there is no limit for corporations. (As warned,
you cannot evade the limit by forming a corporation when the loan is
actually to an individual.)

MAINE, the legal rate of interest is 6%. Judgments below $ 30,000
bear 15%, otherwise they bear interest at the 52 week average
discount rate for T-Bills, plus 4%.

MARYLAND, the legal rate of interest is 6%; the general usury limit
is 24%. There are many nuances and exceptions to this law. Judgments
bear interest at the rate of 10%.

MASSACHUSETTS, the legal rate of interest is 6%; the general usury
rate is 20%. Judgments bear interest at either 12% or 18% depending
on whether the court finds that a defense was frivolous.

MICHIGAN, the legal rate of interest is 5%; the general usury limit
is 7%. Judgments bear interest at the rate of 1% above the five year
T-note rate.

MINNESOTA, the legal rate of interest is 6%. The judgment rate is the
"secondary market yield" for one year T-Bills. Usury limit is 8%.

MISSISSIPPI, the legal rate of interest is 9%; the general usury
limit is more than 10%, or more than 5% above the federal reserve
rate. There is no usury limit on commercial loans above $ 5,000. The
judgment rate is 9% or a rate legally agreed upon in the underlying
obligation.

MISSOURI, the legal and judgment rate of interest is 9%.
Corporations do not have a usury defense. (Remember that a
corporation set up for the purpose of loaning money to an individual
will violate the usury laws.)

MONTANA, the legal rate of interest is 10%; the general usury limit
is above 6% greater than New York City banks' prime rate. Judgments
bear interest at the rate of 10% per annum.

NEBRASKA, the legal rate of interest is 6%; the general usury limit
is 16%. Accounts bear interest at the rate of 12%. Judgments bear
interest at the rate of 1% above a bond yield equivalent to T-bill
auction price.

NEVADA, the legal rate of interest is 12%; there is no usury limit.

NEW HAMPSHIRE, the legal rate of interest is 10%; there is no general
usury rate.

NEW JERSEY, the legal rate of interest is 6%; the general usury limit
is 30% for individuals, 50% for corporations. There are a number of
exceptions to this law.

NEW MEXICO, the legal rate of interest is 15%. Judgment rate is fixed
by the Court.

NEW YORK, the legal rate of interest is 9%; the general usury limit
is 16%.

NORTH CAROLINA, the legal interest rate and the general usury limit
is 8%. However, there is a provision for a variable rate, which is
16% or the T-Bill rate for non-competitive T-Bills. Above $ 25,000
there is no express limit. However, the law providing for 8% is still
on the books- be careful and see a lawyer!

NORTH DAKOTA, the legal rate of interest is 6%; the general usury
limit is 5 1/2% above the six-month treasury bill interest rate. The
judgment rate is the contract rate or 12%, whichever is less. A late
payment charge of 1 3/4% per month may be charged to commercial
accounts that are overdue provided that the charge is revealed prior
to the account being opened and that the terms were less than thirty
days, that is, that the account terms were net 30 or less.