Interest Rate Reform Act of 1981

Interest Rate Reform Act of 1981 - Prohibits any officer or employee of the United States from selling any debt obligation of the United States, or of any agency or instrumentality of the United States, bearing interest at a rate, or at a discount from face value, yielding a rate of return greater than 15 percent or one-fourth of one percent less than the average auction price for Treasury bills at the auction held the week prior to the date of the enactment of this Act, whichever is greater.

Sets forth the formula for reducing the maximum interest rate or yield after such date and for maintaining such maximum interest rate or yield at such level. Declares that the maximum legal rate of interest shall not be greater than six percent above such currently effective rate.

Makes all contracts and assurances for the loan or forbearance in money or other thing of value at more than the legal rate of interest void as to the excess of interest over the legal rate of interest.

Permits the principal, with legal rate of interest, to be recovered on any such contract or assurance, but not the excess of interest. Permits such excess of interest, if already paid, to be recovered from the lender or forbearer even through payment was made to an assignee.

Declares that no person may plead or set up the taking of more than the legal rate of interest as a defense to any action brought against such person to recover damages on, or to enforce payment of or other remedy on, any mortgage, bond, note, or other obligation executed or assumed by such person.

Declares that all references to interest rates and yields in this Act mean simple interest annualized over a one year period.

States that a reasonable charge for origination fees, finder's fees, delinquency fees and commissions, and actual costs of recording and filing fees and of documentary and intangible taxes shall not be considered interest under this Act.