Most states have usury laws (usually statutes) governing the amount of interest that can be charged on a loan. Usury laws vary from state to state, but the elements of a usury claim are generally: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the exaction of a greater compensation than allowed by law for the use of the money by the borrower.

And interest means compensation for the use, forbearance, or detention of money. The term does not include time price differential, regardless of how it is denominated. The term does not include compensation or other amounts that are determined or stated by law not to constitute interest, or that are permitted to be contracted for, charged, or received in addition to interest in connection with an extension of credit.

Service charges, finance charges, and discount points are generally considered interest for purposes of usury. But contingent or uncertain charges are generally not considered interest.

In Nebraska, usury laws are codified to regulate the maximum interest rates that can be charged on loans. The legal maximum rate of interest in Nebraska is generally set at 16% per annum when not specified in a written agreement. For written agreements, parties may agree to any rate as long as it is in writing and signed by the party to be charged. The elements of a usury claim in Nebraska include: (1) the existence of a loan of money; (2) an absolute obligation on the part of the borrower to repay the principal amount; and (3) the lender charging an interest rate exceeding the maximum allowed by Nebraska law. Interest is considered to be any compensation for the use or forbearance of money, but it does not include charges that are not classified as interest under Nebraska law, such as time price differentials. Service charges and finance charges are typically treated as interest for the purposes of usury unless they fall into categories that are explicitly excluded by law. It is important for lenders to be aware of these regulations to avoid the penalties associated with usury violations, which can include forfeiture of all interest or even double the amount of interest taken or received.