Is there a usury cap on a Utah loan?
Not a general one in the text we hold: the parties to a lawful written, verbal or implied contract may agree upon any rate of interest, including for a loan or forbearance of money, goods or services, and absent an expressly specified rate the legal rate is 10% per annum. That section does not affect a penalty or interest charge that applies by law to delinquent or other taxes, or any contract or obligation made before May 14, 1981 (§ 15-1-1). Criminal usury is committed by an actor who knowingly engages in, or finances, the business of making loans at a higher rate of interest or consideration than is authorized by law, a third degree felony (§ 76-6-520).
The trap
'Any rate' is not unlimited in every setting: the criminal usury section is keyed to rates 'authorized by law', so a lender subject to a specific rate statute elsewhere in the Code can still commit it; those rate statutes were not researched here. A contract silent on interest carries 10%, not zero. Criminal usury also carries a forfeiture track: § 76-6-520 provides that forfeiture of property under the section, including seizure and disposition and any related judicial or administrative proceeding, runs under the seizure-of-property and contraband titles, and it imposes no criminal or civil liability on a law enforcement officer acting within the scope of a criminal investigation.
4 authorities
- statuteUtah Code § 15-1-1enactment date not established
The words that state the rule
The parties to a lawful written, verbal, or implied contract may agree upon any rate of interest for the contract, including a contract for services, a loan or forbearance of any money, goods, or services, or a claim for breach of contract. Unless the parties to a lawful written, verbal, or implied contract expressly specify a different rate of interest, the legal rate of interest for the contract, including a contract for services, a loan or forbearance of any money, goods, or services, or a claim for breach of contract is 10% per annum.
- statuteUtah Code § 76-6-520enactment date not established
The words that state the rule
An actor commits criminal usury if the actor knowingly engages in, or directly or indirectly provides financing for, the business of making loans at a higher rate of interest or consideration therefor than is authorized by law. A violation of Subsection (2) is a third degree felony.
- statuteUtah Code § 15-1-1enactment date not established
The words that state the rule
Nothing in this section may be construed in any way to affect any penalty or interest charge that by law applies to delinquent or other taxes or to any contract or obligations made before May 14, 1981.
- statuteUtah Code § 76-6-520enactment date not established
The words that state the rule
This section may not be construed to impose criminal or civil liability on any law enforcement officer acting within the scope of a criminal investigation. The forfeiture of property under this section, including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be conducted in accordance with Title 77, Chapter 11a, Seizure of Property and Contraband , through Chapter 11c, Retention of Evidence .
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.