National Usury Act

National Usury Act - Sets the legal rate of interest as follows: (1) 15 percent per annum effective 30 days after enactment; (2) 14 percent per annum effective 12 months after enactment; (3) 13 percent per annum effective 18 months after enactment; (4) 12 percent per annum effective 24 months after enactment; (5) 11 percent per annum effective 30 months after enactment; and (6) ten percent per annum effective 36 months after enactment.

Permits any State or national bank to charge one dollar for any loan negotiated at such bank, even if the legal rate of interest does not amount to that sum.

Voids, as to any excess over the legal interest rate, all contracts and assurances for the loan or forbearance of more than $300.

Provides that partial payment on a debt bearing interest shall be first applied to the interest then due.

Provides that such restrictions shall not apply with respect to loans which are made by petty loan companies or credit unions and which do not exceed $2,500.

Prohibits any person from pleading or setting up the taking of more than the legal rate of interest as a defense to any action involving a mortgage, bond, note, or other obligation executed or assumed by such person.

Declares that premiums on insurance policies acquired from an insurance company as a condition for a secured loan shall not be considered as interest on the loan and the loan shall not be rendered usurious by reason of such a condition.

Declares that a judgment shall bear legal interest from its date.

Declares that each person engaged in the business of financing loans on personal property sold on credit shall pay a five percent interest rate per annum on holdbacks, reserves, or other money withheld from the dealer under any contract for financing such credit purchase.

Sets forth fines for the violation of such requirement.

Requires each bank and institution authorized to deal in bills of exchange: (1) to fix at least monthly the rates of exchange at which bills shall be purchased; and (2) to enter them upon the proceedings of the board of directors, designating the difference to be made, if any, on account of the time the bill has to run.

Sets forth the terms under which a bank, trust company, or combined bank and trust company may lend money, charge or receive interest in advance, or contract for a charge for a secured or unsecured installment loan.