CHAPTER
341
RATE OF INTEREST |
ARRANGEMENT OF
SECTIONS |
SECTION |
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|
Rates of interest on loans. |
Contracts to pay unauthorised rates void. |
Transaction harsh and unconscionable if rates
exceed on loans made prior to this Act. |
When loan deemed to be made. |
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CHAPTER 341 |
RATE OF INTEREST |
An Act to
regulate the rate of interest which may be charged on loans and for purposes
connected therewith. | 25 of 1948
6 of 1980
5 of 1987
15 of 1990 |
[Commencement 17th
August 1948] |
1. This Act may be cited as the Rate of Interest Act. | Short title. |
2. In this Act, unless the context otherwise requires- | Interpretation. |
"court"
means the Supreme Court, or a magistrate's court to the extent to which it has
civil jurisdiction under any Act. |
3. The rate of interest which may be charged by any
person on any loan of money made after the commencement of this Act shall not
directly or indirectly exceed twenty per centum per annum simple interest on
loans of more than one hundred dollars, or thirty per centum per annum simple
interest on loans of one hundred dollars or any less amount irrespective of the
date fixed for repayment of the said loan. | Rates of interest on loans. |
4. Any contract, promissory note, bill of exchange,
cheque, receipt or any other document entered into after the commencement of
this Act, whereby a rate of interest higher than that authorised by section 3
of this Act purports to be payable either expressly or by implication in
respect of any loan, shall be absolutely null and void, and no proceedings
shall be entertained in any court either for the recovery of the loan or of any
interest thereon. | Contracts to pay unauthorised rates void. |
5. For the purposes of the Money Lending Act, and the
granting of relief thereunder, the fact that interest has been charged on any
loan made prior to the commencement of this Act at a rate higher than that
authorised by section 3 of this Act shall be conclusive evidence that the rate
of interest charged was excessive, and that the transaction was harsh and
unconscionable. | Transaction harsh and unconscionable if rates exceeded
on loans made prior to this Act. |
6. Where any loan made before the commencement of this
Act is renewed after the commencement of this Act, or where any note or other
document is executed after the commencement of this Act in respect of a loan
made prior thereto, such loan shall be deemed to have been made, and such note
or other document to have been executed, in respect of a loan made after the
commencement of this Act. | When loan deemed to be made. |
7. Any person who contravenes or attempts to contravene
any of the provisions of this Act shall be guilty of an offence, and shall be
liable on summary conviction to a fine of four hundred dollars or six months
imprisonment or to both. | Penalties. |
8. Notwithstanding anything to the contrary, this Act
shall not apply to any loan made- | Application of this Act. |
(a) in a
currency other than the currency of The Bahamas; |
(b) in the
currency of The Bahamas by any institution licensed under the Banks and Trust Companies Regulation Act. |
9. Notwithstanding anything to the contrary in section
4 no document referred to in that section heretofore or hereafter made shall be
or be deemed to be or ever to have been null and void by reason only of a
provision therein for the capitalisation of interest in arrears and the
consequential payment of compound interest resulted or could result in the
contravention of section 3: | Saving. |
Provided that in
any case where the maximum rate of interest permitted by 3 shall in fact have
been exceeded by virtue of the capitalisation of interest in arrears the amount
of such excess shall not be recoverable by action or otherwise and in any such
case where the excess has been paid it shall be recoverable from and payable by
the recipient or his successor in title. |