State laws limit the rate of interest a lender may charge borrowers, usually with several exceptions. For instance, states often make exceptions for open credit accounts, savings and loans, and business loans. It's also important to understand that in practice borrowers in many states may agree to pay a higher rate of interest in writing (or simply by clicking "I agree" on an online application form), thus waiving these statutory restrictions.
Additionally, the U.S. Supreme Court decided in 1978 (Marquette National Bank v. First of Omaha Corp. ) that national banks may charge the highest rate allowed in their home state, regardless of where the borrower lives. Additional federal law gave state banks the similar ability to "export" lower rates as well.
Nebraska Interest Rate Limits: The Basics
According to Nebraska law, the legal limit for interest rates is 6 percent (16 percent for contracts). However, exceptions include loans by the Department of Banking, corporate loans, open credit accounts, and savings and loans. Because of the Supreme Court's 1978 Marquette ruling (briefly discussed above), credit cards usually have a much higher interest rate than the statutory limit in most states.
The following table lists additional details about interest rate limits in Nebraska. See FindLaw's Debt Collection Laws and Personal Finance sections to learn more.
| Legal Maximum Rate of Interest | Up to 16% for contract (§45-101.03); otherwise legal rate, 6% (§45-102) |
| Penalty for Usury (Unlawful Interest Rate) | Only principal recoverable (§§45-105, 1Accor10); principal plus interest not exceeding legal contract rate (45-110) |
| Interest Rates on Judgments | 1% above bond equivalent yield; rate of contract; or specifically provided by law (§45-103) |
| Exceptions | Loans by Department of Banking, loan to any corporation; principal over $25,000; loan guaranteed by state/federal government on securities, open credit accounts; savings and loans; business or agricultural purpose loans; installment contract for goods and services; loan to any corporation, partnership or trust (45-101.04) |
Note: State laws are always subject to change at any time through the enactment of newly signed legislation or other means. While we strive to ensure the accuracy of these pages, you may also want to contact a Nebraska consumer protection attorney or conduct your own legal research to verify the state law(s) you are researching.
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