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Official Code of Georgia Annotated

Title 7. BANKING AND FINANCE · Chapter 4. INTEREST AND USURY · Article 1. IN GENERAL

7-4-8. Commission to third person does not make lawful interest usurious.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. Except as the application of this Code section is modified by Code Section 7-3-5, where the lender neither takes nor contracts to take more than lawful interest, the loan is not rendered usurious by money paid or agreed to be paid others by the borrower in order to obtain the loan.

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Civil Code 1895, § 2887; Civil Code 1910, § 3437; Code 1933, § 57-104; Ga. L. 1957, p. 331, § 3.

Editor's notes

Code Section 7-3-5, referred to in this Code section, was repealed by Ga. L. 2020, p. 156, § 2/SB462, effective June 30, 2020.

Law reviews

For note discussing the applicability of the usury laws to legitimate brokers’ commissions, see 12 Ga. L. Rev. 814 (1978). For article discussing methods of computation of finance charges in Georgia consumer credit contracts, see 30 Mercer L. Rev. 281 (1978).

Other notes

History of Code section.
This Code section is derived from the decisions in Merck v. American Freehold Land Mfg. Co., 79 Ga. 213, 7 S.E. 265 (1887), and Hughes v. Griswold, 82 Ga. 299, 9 S.E. 1092 (1889).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t7-t8-(v5)-2024-pdf.pdf, Volume V5, 2024 edition, page 726; merge action: carried; file SHA-256 5c69f28428d8.