Usury Law
A law that caps the maximum interest rate a lender can charge, with exemptions and thresholds that vary significantly by state and type of transaction.
Usury laws exist to prevent excessively high interest rates on loans, though many jurisdictions carve out exemptions for certain licensed lenders, transaction sizes, or business (as opposed to consumer) lending, and products structured as a factor rate or revenue share rather than a stated interest rate are treated differently depending on the state.
Because usury limits and exemptions vary widely and change over time, this is general background rather than a specific compliance answer for any transaction; rate structuring and compliance should be reviewed with qualified legal counsel familiar with the applicable jurisdiction.
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