45-102 Interest; legal rate; exception. - Nebraska Statutes

45-102. Interest; legal rate; exception.Interest upon the loan or forbearance of money, goods or things in action shall be at the rate of twelve percent per annum for the period commencing on March 19, 1980, through August 31, 1983, and at the rate of six percent per annum commencing on September 1, 1983, on the unpaid principal balance, unless a greater rate, not exceeding the rate of interest provided in section 45-101.03, be contracted for by the parties. SourceLaws 1879, § 2, p. 113; R.S.1913, § 3347; C.S.1922, § 2837; C.S.1929, § 45-104; Laws 1933, c. 85, § 2, p. 336; Laws 1941, c. 90, § 3, p. 345; C.S.Supp.,1941, § 45-102; Laws 1943, c. 108, § 2, p. 376; R.S.1943, § 45-102; Laws 1961, c. 17, § 3, p. 118; Laws 1963, c. 272, § 2, p. 819; Laws 1963, Spec. Sess., c. 8, § 5, p. 101; Laws 1963, Spec. Sess., c. 7, § 4, p. 90; Laws 1967, c. 276, § 2, p. 744; Laws 1975, LB 349, § 4; Laws 1980, LB 279, § 5. Annotations1. Rate2. Miscellaneous3. Unconstitutional1. RateThis section is not the only section fixing maximum rate of interest. Lefferdink v. Schmutte, 149 Neb. 695, 32 N.W.2d 194 (1948).Statutory rate of interest was not applicable in absence of contract. Moore v. Schank, 148 Neb. 228, 27 N.W.2d 165 (1947).Where joint debtor has paid more than proportionate share of debt and seeks contribution, he is entitled to interest at legal rate and not at rate provided in original debt. Exchange Elevator Co. v. Marshall, 147 Neb. 48, 22 N.W.2d 403 (1946).Guardian is surcharged with the legal rate of interest where an unauthorized loan is made by him. In re Guardianship of Morris, 145 Neb. 319, 16 N.W.2d 442 (1944).In suit on fire insurance policy, where proof of loss was made June 1, 1933, when legal interest rate was seven percent, interest was allowed on judgment at seven percent and not six percent as provided by law at time judgment entered. Wheaton v. Aetna Life Ins. Co., 128 Neb. 583, 259 N.W. 753 (1935).Note providing interest from date without specified rate bears interest at legal rate. Praest v. Quesner, 113 Neb. 485, 203 N.W. 549 (1925).A judgment upon a note and mortgage draws interest at the same rate as contract. Rafert v. Federal Farm Mortgage Corporation, 152 F.2d 193 (8th Cir. 1945).2. MiscellaneousIn order to receive prejudgment interest, a litigant must comply with section 45-103.02. Sayer v. Bowley, 243 Neb. 801, 503 N.W.2d 166 (1993).A devise under a will is neither a loan nor a forbearance. In re Estate of Peterson, 230 Neb. 744, 433 N.W.2d 500 (1988).Potentially conflicting interests within a class are incompatible with the maintenance of a true class action and this aspect may be disposed of upon motion for summary judgment. Blankenship v. Omaha P. P. Dist., 195 Neb. 170, 237 N.W.2d 86 (1976).Assignment of interest under insurance policy does not bear interest until death of insured and collection on policy. In re Estate of Dalbey, 143 Neb. 32, 8 N.W.2d 512 (1943).A dealer in automobiles may in good faith sell a car on time for a price in excess of the cash price without tainting the transaction with usury, though the difference in prices may exceed lawful interest for a loan. American Loan Plan v. Frazell, 135 Neb. 718, 283 N.W. 836 (1939).Proper method of computing interest on certificate of deposit in insolvent state bank is stated. State ex rel. Spillman v. Farmers State Bank, 113 Neb. 679, 204 N.W. 795 (1925).In awarding damages for breach of contract, court could not allow interest on unliquidated claim at a rate exceeding six percent after statute reducing legal rate from seven to six percent became effective. Otoe County Nat. Bank v. Delany, 88 F.2d 238 (8th Cir. 1945).Alleged error in calculating interest on allowance of attorney's fee is not reviewable in absence of motion, objection or exception, or assignment of error at trial. Metropolitan Life Ins. Co. v. Armstrong, 85 F.2d 187 (8th Cir. 1936).Where the interest charged on delinquent taxes did not exceed the maximum lawful rate that could be charged by agreement, such charge was not a penalty but was interest allowable under the federal bankruptcy act. Horn v. Boone County, 44 F.2d 920 (8th Cir. 1930).Federally chartered lending institution designed to serve particular, limited purpose and which was not engaged in banking was not bound by Nebraska usury law. Beatrice Production Credit Assn. v. Vieselmeyer, 376 F.Supp. 1391 (D. Neb. 1973).3. UnconstitutionalAmendment to this section in 1963 Special Session by Legislative Bill 11 was unconstitutional as special legislation. State Securities Co. v. Ley, 177 Neb. 251, 128 N.W.2d 766 (1964).Amendment to this section in 1963 Special Session by Legislative Bill 16 was unconstitutional as special legislation. Davis v. General Motors Acceptance Corp., 176 Neb. 865, 127 N.W.2d 907 (1964).