§478-5  [OLD] REPEALED.  L 1986, c 137,
pt of §1.



 



§478-5  Usury not recoverable.  If a
greater rate of interest than that permitted by law is contracted for with
respect to any consumer credit transaction, any home business loan or any
credit card agreement, the contract shall not, by reason thereof, be void.  But
if in any action on the contract proof is made that a greater rate of interest
than that permitted by law has been directly or indirectly contracted for, the
creditor shall only recover the principal and the debtor shall recover costs. 
If interest has been paid, judgment shall be for the principal less the amount
of interest paid.  This section shall not be held to apply, to loans made by
financial services loan companies and credit unions at the rates authorized
under and pursuant to articles 9 and 10 of chapter 412. [CC 1859, §1483; am L
1898, c 4, §4; RL 1925, §3588; am L 1931, c 137, §1; RL 1935, §7053; am L 1939,
c 75, pt of §1(6782 W); RL 1945, §8734; RL 1955, §191-4; am L 1957, c 95, §1; HRS
§478-4; am L 1984, c 253, §10; ren and am L 1986, c 137, pt of §1; am L 1989, c
266, §3; am L 1993, c 350, §26]



 



Rules of Court



 



  Costs, see HRCP rule 54(d).



 



Case Notes



 



  Recovery of principal may be had where principal and usurious
interest are separable even though they are lumped together in note sued on;
payments made on account of such note should be applied on principal. 11 H.
747.



  Statute applied and payments made under usurious contract
applied on principal. 34 H. 639, modified 34 H. 685.



  Usury voluntarily paid not recoverable. 36 H. 107; 37 H. 295.



  This section docks interest in action brought by lender, but
does not render contract entirely void as to interest. 49 H. 160, 183-86, 413
P.2d 221, reh'g den. 49 H. 255, 413 P.2d 221.