Tennessee § 47-14-117 - Usury or excessive charges — Contracts.

§ 47-14-117. Usury or excessive charges — Contracts.

Any contract which on its face requires the payment of usury or excess loan charges, commitment fees, or brokerage commissions shall not be enforceable; but the original lender or creditor may sue to recover the principal actually advanced, plus lawful interest, loan charges, commitment fees, and brokerage commissions. Where usury or excess loan charges, commitment fees or brokerage commissions do not appear on the face of the contract, but are proved, only the principal, plus lawful interest, loan charges, commitment fees, and brokerage commissions may be recovered. Where, however, the court finds that the lender or creditor has been guilty of unconscionable conduct in a transaction by taking interest, loan charges, commitment fees, or brokerage commissions in excess of the limitations fixed by statute, that lender or creditor shall not be entitled to recover any interest, loan charges, commitment fees, or brokerage commissions with respect to that transaction, and shall be required to refund to the borrower or debtor any loan charges, commitment fees, or brokerage commissions, and twice the amount of any interest collected with respect to that transaction, and the borrower shall be entitled to recover reasonable attorneys' fees from the lender. As used in this subsection (c), “unconscionable conduct” includes, but is not limited to, any calculated violation of statutory limitations on interest, loan charges, commitment fees, or brokerage commissions with full awareness of those limitations. Acts 1979, ch. 203, § 16. Compiler's Notes. Former §§ 47-14-102 — 47-14-118 (Acts 1786, ch. 4, § 5; Acts 1803, ch. 6, § 1; Acts 1835-1836, ch. 50, §§ 1-5; Acts 1843-1844, ch. 181; Code 1858, §§ 1943-1955; Acts 1899, ch. 189, § 1; Acts 1901, ch. 60, § 1; Acts 1903, ch. 439, § 1; Shannon §§ 3491a1, 3492, 3493, 3493al, 3494-3504, 3504a1; Williams §§ 7300- 7303, 7305-7316; Code 1932, §§ 7300-7303, 7305-7316; T.C.A. (orig. ed.), 47-1602 — 47- 1618; Acts 1963, ch. 81, § 1(10-104(3)); Acts 1967, ch. 217, § 1; Acts 1969, ch. 61, § 1; Acts 1976, ch. 844, § 1) were repealed by Acts 1979, ch. 203, § 24 and present §§ 47-14-102 — 47-14-124 substituted therefor. Cross-References. Costs affected by usury, § 20-12-116 . Textbooks. Gibson's Suits in Chancery (7th ed., Inman), § 8. Cited: In re Crabtree, 48 B.R. 528, 1985 Bankr. LEXIS 6334 (Bankr. E.D. Tenn. 1985); Bank of Crockett v. Cullipher, 752 S.W.2d 84, 1988 Tenn. App. LEXIS 29 (Tenn. Ct. App. 1988); In re Apple Tree Partners, L.P., 131 B.R. 380, 1991 Bankr. LEXIS 1307 (Bankr. W.D. Tenn. 1991); Terry v. Cmty. Bank of N. Va., 255 F. Supp. 2d 811, 2003 U.S. Dist. LEXIS 4743 (W.D. Tenn. 2003); Terry v. Cmty. Bank of N. Va., 255 F. Supp. 2d 817, 2003 U.S. Dist. LEXIS 8178 (W.D. Tenn. 2003).