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TN HB0775

TN HB0775
AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 5, relative to industrial loan and thrift companies.


summary

Introduced
02/04/2025
In Committee
03/12/2025
Crossed Over
Passed
04/08/2025
Dead
Signed/Enacted/Adopted
04/08/2025

Introduced Session

114th General Assembly

Bill Summary

As enacted, increases, from 30 to 36 percent per annum, the maximum permitted effective rate of interest that may be contracted for by an industrial loan and thrift company on an unpaid balance where the amount financed is $100 or more; makes other related changes. - Amends TCA Title 45, Chapter 5.

AI Summary

This bill amends Tennessee's laws regarding industrial loan and thrift companies by increasing the maximum permitted effective interest rate from 30% to 36% per annum for loans of $100 or more. Specifically, the bill modifies several sections of the Tennessee Code Annotated related to lending practices, removing some existing subdivisions and updating interest rate limitations. Additionally, the bill increases the percentage related to certain lending calculations from 10% to 12.5%. The changes will take effect on July 1, 2025, and will apply to any contracts or agreements that are entered into, amended, or renewed on or after that date. This modification essentially gives industrial loan and thrift companies more flexibility in setting interest rates for loans, potentially allowing them to charge higher rates on smaller dollar amounts while standardizing the maximum rate at 36% for loans of $100 or more.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Comp. became Pub. Ch. 70 (on 04/08/2025)

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