Baylor obtains a loan from City Bank at 24.5 percent interest. Their state's usury statute limits interest rates to a 22.0 percent maximum. Baylor's contract with the bank is enforceable only if

Question

Baylor obtains a loan from City Bank at 24.5 percent interest. Their state's usury statute limits interest rates to a 22.0 percent maximum. Baylor's contract with the bank is enforceable only if​

Quizplus · Accepted Answer

The contract would not be enforceable because the interest rate exceeds the state's usury limit, making the contract illegal regardless of the parties' knowledge or attempts to disaffirm it.

Baylor Obtains a Loan from City Bank at 24