Kentucky Usury Limit

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    Calipari Guy

    My entire banking life, I’ve been taught/told/known that the usury limit for Kentucky is 24% APR based on KRS 286.6-435 (which used to be KRS 287) and was always called the “Credit Union Rule”. Since KRS has been renumbered things are a bit trickier to find by memory. I now also kind KRS 286.3-214 for loans under $15,000 which states “Notwithstanding the provisions of any other law, a bank may take, receive, reserve, and charge on money due or to become due on any contract or other obligation in writing, where the original principal amount is fifteen thousand dollars ($15,000) or less, interest at any rate allowed national banking associations by the laws of the
    United States of America. A trust company shall not make any extensions of credit
    on its own account, but may make extensions of credit for trust assets under

    I can’t find a national bank usury limit because I’m not familiar with national bank rules (always have been a state, non-member). But, I’m still confident that my usury limit is 24%. Can I rest easy or do I need to re-learn my usury limits?


    National banks comply with their state usury laws.

    Calipari Guy

    Thank you.

    So, I haven’t lost my mind? The highest usury limit on a non-LOC is 24% using the credit union statute? Jack trained me on that 10 years or so ago and I’ve gone on about my business. Something happened the other day and I had to challenge what I knew. As always, reading KRS and trying to make sense of it is “fun”.

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