Usurae centesimae refers to a legal term from Roman law that signifies the maximum allowable interest rate. Under this system, the principal amount of a loan was divided into one hundred parts, allowing lenders to charge interest on one part each month. This practice resulted in an annual interest rate of twelve percent, which was the highest rate permitted at the time.
This term is primarily used in discussions of historical legal frameworks concerning lending practices. While usurae centesimae itself is not commonly referenced in modern legal practice, its principles can inform current laws regarding interest rates and lending. Understanding this term may be relevant in civil law contexts, particularly in cases involving contracts or financial agreements. Users can manage related legal forms and documents through platforms like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
For instance, if a lender provides a loan of $1,000, under the usurae centesimae principle, they could legally charge $120 in interest over the course of a year, calculated as $10 per month.
(Hypothetical example) If a borrower takes out a loan of $5,000, the maximum interest they would owe over one year would be $600, following the same twelve percent rate.
Examples of state differences (not exhaustive):
| State | Maximum Interest Rate |
|---|---|
| California | 10 percent |
| Texas | 18 percent |
| New York | 16 percent |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Usury | Charging interest above the legal limit. | Usurae centesimae is a historical term for the maximum legal interest rate, while usury refers to exceeding that limit. |
| Interest | Payment made for the use of borrowed money. | Usurae centesimae specifies a legal framework for calculating interest rates. |
If you are involved in a lending agreement or are a borrower, it's essential to understand the applicable interest rates in your state. Consider using US Legal Forms to find templates that can help you draft or review loan agreements. If your situation is complex, consulting with a legal professional is advisable to ensure compliance with current laws.
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It refers to the highest legal interest rate allowed under Roman law, which was twelve percent per year.