USURY, an unlawful contract upon the loan of money, to receive the same again with exorbitant increase. By statute 37 Hen. VIII. c. 9, the rate of interest was fixed at ten per cent. per annum; which the statute 13 Eliz. c. 5 confirms, and ordains that all brokers shall be guilty of a præmunire who transact any contracts for more, and the securities themselves shall be void. The statute 21 Jac. I. c. 17, reduced interest to eight per cent.; and it having been lowered in 1650, during the usurpation, to six per cent., the same reduction was re-enacted after the restoration by statute 12 Car. II. c. 13; and the statute 13 Anne, st. 2, c. 16, reduced it to five per cent. Not only all contracts for taking more were in themselves utterly void, but also the lender was to forfeit treble the sum of money.
browed. If any scrivener or broker took more than five shillings per cent. procuration-money, or more than twelve pence for making a bond, he was to forfeit L.20, with costs, and to suffer imprisonment for half a year. By 3 & 4 Will. I. c. 98, § 7, bills not having more than three months then were exempted from the operation of the laws against usury. By 1 Vict. c. 80, the exemption was extended to be payable at twelve months; and the operation of the act was limited to the first day of January 1840. By 2 & 3 Vict. c. 37, it is enacted, that bills of exchange and contracts for loans or forbearance of money above L.10, shall not be affected by the usury laws. Five per cent. still left as the legal interest of money, unless it shall appear that any different rate was agreed to between the parties. All previous enactments relative to pawnbrokers are to remain in full force. This act is to continue in force till the first day of January 1842.