535.5 Penalty for usury. If it is ascertained in an action brought on a contract that a rate of interest has been contracted for, directly or indirectly, in money or in property, greater than is authorizedby this chapter, the rate shall work a forfeiture of eight cents on the hundred by the yearupon the amount of the principal remaining unpaid upon the contract at the time judgmentis rendered, and the court shall enter final judgment in favor of the plaintiff and againstthe defendant for the principal sum remaining unpaid without costs, and also against thedefendant and in favor of the state, to be paid to the treasurer of state for deposit in thegeneral fund of the state, for the amount of the forfeiture. If unlawful interest is contractedfor the plaintiff shall not have judgment for more than the principal sum, whether theunlawful interest is incorporated with the principal or not. [R60, §1791; C73, §2080; C97, §3041; C24, 27, 31, 35, 39, §9407; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, S79, C81, §535.5] 83 Acts, ch 185, §52, 62; 83 Acts, ch 186, §10109, 10201, 10204 Sat Dec 23 01:37:26 2023 Iowa Code 2024, Section 535.5 (17, 0)
Iowa Legal Code