47-14-107 - Computation of interest Installment loans. - Tennessee Statutes

47-14-107. Computation of interest Installment loans.

(a)  This chapter does not limit or restrict the manner or method of contracting for interest, whether by way of add-on, discount, or otherwise, so long as the maximum effective rate of interest does not exceed that authorized by statute.

(b)  For installment loans, the maximum effective rate of interest shall:

     (1)  Be determined in accordance with the actuarial method;

     (2)  Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and

     (3)  Not be affected by the prepayment of the loan, in whole or in part.

[Acts 1979, ch. 203, § 6.]