44-1203. Application to principal of payments
made upon interest contracted in excess of the maximum permitted
by law; judgment in action to recover obligation involving
usurious interest limited to amount due on principal
Where a rate of interest greater than the maximum permitted by law is contracted
for, reserved or received, directly or indirectly, all payments of money or property made
on account of such interest, or as inducements to contract for more than the maximum
permitted by law, whether made in advance or not, shall be deemed payments made on
account of the principal. In an action brought to recover the amount of the obligation
the court shall give judgment for no greater amount than the balance determined to be due
upon the principal, without interest, after deducting such payments.
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