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The Vermont Statutes Online



Title

09

:
Commerce and Trade






Chapter

004

:
INTEREST






Subchapter

001
:
INTEREST GENERALLY










 

§

50. Penalties

(a) When a

greater rate of interest than is allowed by law is paid, the person paying it

may recover the amount so paid above the legal interest, with interest thereon

from the time of payment and all expenses of collection, including reasonable

attorney's fees, in a civil action on this statute.

(b) Except as

otherwise expressly authorized by law, a lender shall not knowingly or

willfully make any contract, express or implied, which directly or indirectly

calls for the payment of any interest or finance charge in excess of the legal

rate as set forth in section 41a of this title. The section shall be

enforceable only to the extent herein provided and the lender shall have no

right to collect any interest or charges whatsoever and shall have a right to

collect only one-half of the principal.

(c) Any person,

partnership, association, or corporation and the several members, officers,

directors, agents, and employees thereof, who knowingly or willfully contracts

for or collects any sum in excess of legal interest for the loan, use, or

forbearance of money, unless expressly authorized by law to do so, shall, for

the first offense, be fined not more than $500.00 or imprisoned for not more

than six months, or both. Upon conviction for violating this section in any

transaction entered into or consummated after a first conviction hereunder, the

offender shall be fined not more than $1,000.00 or imprisoned for not more than

one year, or both. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended

1979, No. 173 (Adj. Sess.), § 14, eff. April 30, 1980.)