§ 45-4-602. Interest.

TN Code § 45-4-602 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

(a) A credit union may lend to its members at a maximum effective rate of interest, which shall not be in excess of the greater of:

(1) The applicable formula rate; or

(2) The rate of interest permitted to be charged by credit unions chartered by the federal government.

(b) For installment loans, the maximum effective rate of interest shall:

(1) Be determined in accordance with the actuarial method;

(2) Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and

(3) Not be affected by the prepayment of the loan, in whole or in part.