408.035. Unlimited interest, when allowed. - Missouri Statutes

Unlimited interest, when allowed.

408.035. Notwithstanding the provisions of any other law to thecontrary, it is lawful for the parties to agree in writing to any rate ofinterest, fees, and other terms and conditions in connection with any:

(1) Loan to a corporation, general partnership, limited partnershipor limited liability company;

(2) Business loan of five thousand dollars or more;

(3) Real estate loan, other than residential real estate loans andloans of less than five thousand dollars secured by real estate used for anagricultural activity; or

(4) Loan of five thousand dollars or more secured solely bycertificates of stock, bonds, bills of exchange, certificates of deposit,warehouse receipts, or bills of lading pledged as collateral for therepayment of such loans.

(L. 1974 2d Ex. Sess. S.B. 1, A.L. 1980 H.B. 1195, A.L. 1981 S.B. 5 Revision, A.L. 1992 S.B. 688, A.L. 1997 H.B. 655 merged with S.B. 170)

Effective 6-24-97 (H.B. 655)

5-20-97 (S.B. 170)

(1994) Where statute allows unlimited interest on loans in excess of five thousand dollars secured by real estate used for agricultural activity, banking regulation, C.S.R. 140-6.050, relating to contingent interest and limitations on its application to profitability and successful operations of businesses, is not inconsistent and statute does not entitle bank to ignore limitation of banking regulation. Contingent interest provision of bank note was invalid and unenforceable. Killion v. Bank Midwest, N.A., 886 S.W.2d 29 (Mo.App.W.D.).