§478-8  Exemptions from usury.  (a) 
This chapter (except for this section and section 478-3) shall not apply to any
mortgage loan transaction wholly or partially secured by a guarantee or
insurance or a commitment to insure issued under the provisions of the National
Housing Act, Chapter 13 of Title 12 of the United States Code, the Veterans
Benefit Act, subchapters I and II of Chapter 37 of Title 38 of the United
States Code, and subchapter III of Chapter 8A of Title 42 of the United States
Code, the Small Business Act, Chapter 14A of Title 15 of the United States
Code, and the Small Business Investment Act, Chapter 14B of Title 15 of the
United States Code.



(b)  The provisions of this chapter (except for
this section and section 478-3) shall not apply to any:



(1)  Indebtedness that is secured by a first mortgage
lien on real property, and is agreed to or incurred after May 30, 1980;



(2)  Consumer credit agreement of sale made after May
30, 1980, under which a vendor agrees to sell real property to a vendee but
retains legal title to the real property and in which the rate of interest or
the manner in which such rate shall be determined is clearly stated.  As used
in this paragraph, "agreement of sale" includes subagreement of sale
or other subsequent subagreement of sale made on or after June 18, 1982. 
Notwithstanding the first sentence of this paragraph, with respect to any
consumer credit agreement of sale made on or after July 1, 1985, upon extension
at maturity or renegotiation thereof, the maximum rate of interest charged
thereafter shall not be more than the greater of the rate of interest payable
under the agreement of sale immediately prior to such maturity or renegotiation
or four percentage points above the highest weekly average yield on United States
Treasury securities adjusted to a constant maturity of three years, as made
available by the Federal Reserve Board within sixty days prior to the time of
extension or renegotiation;



(3)  Indebtedness that is secured by a purchase-money
junior mortgage lien on real property that is agreed to and incurred after June
18, 1982; provided that purchase-money junior mortgage lien means a mortgage
that is subordinate in lien priority to an existing mortgage on the same real
property that is given to the seller as part of the buyer's consideration for
the purchase of real property and delivered at the same time that the real
property is transferred as a simultaneous part of the transaction;



(4)  Transaction for the sale of goods, services, or
both, by a seller in the business of selling such goods or services, if the
transaction is subject to chapter 476 or the rate of interest charged by the
seller in the transaction does not exceed eighteen per cent a year; provided
that this paragraph shall not apply to any transaction regulated by chapter 412
or 431 or to any transaction for the sale of financial services.  This
paragraph shall not be deemed to limit any seller's right to charge interest
under section 478-2;



(5)  Payment of any claim under section 431:13-108; or



(6)  Indebtedness secured by a time share interest
defined in section 514E-1, if that time share interest is not otherwise
governed by section 478-8(a) or 478-8(b)(1) to (4), and if the rate of interest
does not exceed eighteen per cent per year.  This paragraph shall not be deemed
to limit a seller's right to charge interest under section 478-2.



(c)  The provisions of this chapter (except for
this section and section 478-3) shall not apply to a loan made by an employee
benefit plan as defined in section 1002(3) of Title 29 of the United States
Code, as amended, or a loan made by the employees' retirement system of the
State of Hawaii.



(d)  This chapter shall not apply to any
mortgage loan which may be made by a financial institution pursuant to rules
adopted by the commissioner of financial institutions pursuant to section
412:2-108. [L 1970, c 199, §2; am L 1974, c 20, §1; am L 1980, c 188, §2; am L
1981, c 204, §1; am L 1982, c 92, §2 and c 288, §2; am L 1985, c 234, §2, c
247, §3, and c 269, pt of §55; am L 1986, c 137, pt of §1; am L 1993, c 350,
§27; am L 1995, c 36, §1; am L 1999, c 99, §§3, 5; am L 2001, c 68, §2; am L
2002, c 52, §2; am L 2005, c 22, §33]



 



Case Notes



 



  Section not applicable between merchants.  691 F. Supp. 247.