{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-303.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-303.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-303.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-303.html"}],"law_id":63345,"edition_id":1,"section_id":63345,"structure_id":15947,"section_number":"6.2-303","catch_line":"Contracts for more than legal rate of interest","history":"1987, c. 622, \u00a7 6.1-330.55; 1997, c. 180; 2002, c. 897; 2010, cc. 477, 794; 2020, cc. 1215, 1258; 2024, c. 728.","full_text":"A\n\nExcept as otherwise permitted by law, no contract shall be made for the payment of interest on a loan at a rate that exceeds 12 percent per year.B\n\nLaws that permit payment of interest at a rate that exceeds 12 percent per year are set out, without limitation, in:1\n\nArticle 4 (§ 6.2-309 et seq.) of this chapter;2\n\nChapter 15 (§ 6.2-1500 et seq.), relating to powers of consumer finance companies;3\n\nChapter 18 (§ 6.2-1800 et seq.), relating to short-term loans;4\n\nChapter 22 (§ 6.2-2200 et seq.), relating to interest chargeable by motor vehicle title lenders;5\n\nSection 36-55.31, relating to loans by the Virginia Housing Development Authority;6\n\nSection 38.2-1806, relating to interest chargeable by insurance agents;7\n\nChapter 47 (§ 38.2-4700 et seq.) of Title 38.2, relating to interest chargeable by premium finance companies;8\n\nSection 54.1-4008, relating to interest chargeable by pawnbrokers; and9\n\nSection 58.1-3018, relating to interest and origination fees payable under third-party tax payment agreements.C\n\nIn the case of any loan upon which a person is not permitted to plead usury, interest and other charges may be imposed and collected as agreed by the parties.D\n\nAny provision of this chapter that provides that a loan or extension of credit may be enforced as agreed in the contract of indebtedness, shall not be construed to preclude the charging or collecting of other loan fees and charges permitted by law, in addition to the stated interest rate. Such other loan fees and charges need not be included in the rate of interest stated in the contract of indebtedness.E\n\nThe provisions of subsection A shall apply to any person who seeks to evade its application by any device, subterfuge, or pretense whatsoever, including:1\n\nThe loan, forbearance, use, or sale of (i) credit, as guarantor, surety, endorser, comaker, or otherwise; (ii) money; (iii) goods; or (iv) things in action;2\n\nThe use of collateral or related sales or purchases of goods or services, or agreements to sell or purchase, whether real or pretended; receiving or charging compensation for goods or services, whether or not sold, delivered, or provided; and3\n\nThe real or pretended negotiation, arrangement, or procurement of a loan through any use or activity of a third person, whether real or fictitious.F\n\nAny contract made in violation of this section is void and no person shall have the right to collect, receive, or retain any principal, interest, fees, or other charges in connection with the contract.G\n\nAny contract entered into on or after July 1, 2024, pursuant to which a person receives a cash advance for assigning to a company or other entity a portion of such person’s rights to receive inheritance funds from a will that has been, or is anticipated to be, offered for probate in a circuit court of the Commonwealth shall be considered a loan. Any funds such person is obligated to pay under the terms of such contract in addition to the total of the cash advance shall be considered interest. Such contract shall be subject to the provisions of subsection A.","order_by":null,"text":{"0":{"id":230834,"text":"Except as otherwise permitted by law, no contract shall be made for the payment of interest on a loan at a rate that exceeds 12 percent per year.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":230835,"text":"Laws that permit payment of interest at a rate that exceeds 12 percent per year are set out, without limitation, in:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":230836,"text":"Article 4 (§ 6.2-309 et seq.) of this chapter;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":230837,"text":"Chapter 15 (§ 6.2-1500 et seq.), relating to powers of consumer finance companies;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":230838,"text":"Chapter 18 (§ 6.2-1800 et seq.), relating to short-term loans;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":230839,"text":"Chapter 22 (§ 6.2-2200 et seq.), relating to interest chargeable by motor vehicle title lenders;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":230840,"text":"Section 36-55.31, relating to loans by the Virginia Housing Development Authority;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":230841,"text":"Section 38.2-1806, relating to interest chargeable by insurance agents;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":230842,"text":"Chapter 47 (§ 38.2-4700 et seq.) of Title 38.2, relating to interest chargeable by premium finance companies;","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"9":{"id":230843,"text":"Section 54.1-4008, relating to interest chargeable by pawnbrokers; and","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"B9"},"10":{"id":230844,"text":"Section 58.1-3018, relating to interest and origination fees payable under third-party tax payment agreements.","type":"section","prefixes":["B","9"],"prefix":"9","entire_prefix":"B9","prefix_anchor":"B9","level":2,"prior_prefix":"B8","next_prefix":"C"},"11":{"id":230845,"text":"In the case of any loan upon which a person is not permitted to plead usury, interest and other charges may be imposed and collected as agreed by the parties.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B9","next_prefix":"D"},"12":{"id":230846,"text":"Any provision of this chapter that provides that a loan or extension of credit may be enforced as agreed in the contract of indebtedness, shall not be construed to preclude the charging or collecting of other loan fees and charges permitted by law, in addition to the stated interest rate. Such other loan fees and charges need not be included in the rate of interest stated in the contract of indebtedness.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"13":{"id":230847,"text":"The provisions of subsection A shall apply to any person who seeks to evade its application by any device, subterfuge, or pretense whatsoever, including:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"14":{"id":230848,"text":"The loan, forbearance, use, or sale of (i) credit, as guarantor, surety, endorser, comaker, or otherwise; (ii) money; (iii) goods; or (iv) things in action;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"15":{"id":230849,"text":"The use of collateral or related sales or purchases of goods or services, or agreements to sell or purchase, whether real or pretended; receiving or charging compensation for goods or services, whether or not sold, delivered, or provided; and","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"16":{"id":230850,"text":"The real or pretended negotiation, arrangement, or procurement of a loan through any use or activity of a third person, whether real or fictitious.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"F"},"17":{"id":230851,"text":"Any contract made in violation of this section is void and no person shall have the right to collect, receive, or retain any principal, interest, fees, or other charges in connection with the contract.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E3","next_prefix":"G"},"18":{"id":230852,"text":"Any contract entered into on or after July 1, 2024, pursuant to which a person receives a cash advance for assigning to a company or other entity a portion of such person’s rights to receive inheritance funds from a will that has been, or is anticipated to be, offered for probate in a circuit court of the Commonwealth shall be considered a loan. Any funds such person is obligated to pay under the terms of such contract in addition to the total of the cash advance shall be considered interest. Such contract shall be subject to the provisions of subsection A.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":15947,"edition_id":1,"name":"Legal, Judgment, and Contract Rates of Interest","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13814,"metadata":{},"date_created":"2026-06-26 04:02:32","date_modified":"2026-06-26 04:02:32","permalink":{"id":263341,"object_type":"structure","relational_id":15947,"identifier":"2","token":"6.2\/I\/3\/2","url":"\/6.2\/I\/3\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13814,"edition_id":1,"name":"Interest and Usury","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12853,"metadata":{},"date_created":"2026-06-26 03:45:57","date_modified":"2026-06-26 03:45:57","permalink":{"id":263333,"object_type":"structure","relational_id":13814,"identifier":"3","token":"6.2\/I\/3","url":"\/6.2\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12853,"edition_id":1,"name":"General Provisions","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263251,"object_type":"structure","relational_id":12853,"identifier":"I","token":"6.2\/I","url":"\/6.2\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62070,"structure_id":15947,"section_number":"6.2-301","catch_line":"Legal rate of interest; when legal rate implied","url":"\/6.2-301\/","token":"6.2\/I\/3\/2\/6.2-301","metadata":false},{"id":70402,"structure_id":15947,"section_number":"6.2-302","catch_line":"Judgment rate of interest","url":"\/6.2-302\/","token":"6.2\/I\/3\/2\/6.2-302","metadata":false},{"id":63345,"structure_id":15947,"section_number":"6.2-303","catch_line":"Contracts for more than legal rate of interest","url":"\/6.2-303\/","token":"6.2\/I\/3\/2\/6.2-303","metadata":false}],"previous_section":{"id":70402,"structure_id":15947,"section_number":"6.2-302","catch_line":"Judgment rate of interest","url":"\/6.2-302\/","token":"6.2\/I\/3\/2\/6.2-302","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-303\/","history_text":"

This law was first created in 1987. The record of its establishment is cataloged in chapter 622 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1987 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1997, chapter 180<\/a>; in 2002, chapter 897<\/a>; in 2010, chapters 477<\/a> and 794<\/a>; in 2020, chapters 1215<\/a> and 1258<\/a>; in 2024, chapter 728<\/a>.<\/p>","references":[{"id":78603,"section_number":"23.1-1112","catch_line":"Bonds; interest","order_by":null,"url":"\/23.1-1112\/"},{"id":78551,"section_number":"6.2-1501","catch_line":"Compliance with chapter; license required; attempts to evade application of chapter","order_by":null,"url":"\/6.2-1501\/"},{"id":85131,"section_number":"6.2-1801","catch_line":"License requirement","order_by":null,"url":"\/6.2-1801\/"}],"refers_to":[{"id":63704,"section_number":"36-55.31","catch_line":"Powers relative to making mortgage loans and temporary construction loans to housing sponsors and persons and families of low and moderate income","order_by":null,"url":"\/36-55.31\/"},{"id":83261,"section_number":"38.2-1806","catch_line":"Interest with respect to credit extended or money lent for premiums on certain policies","order_by":null,"url":"\/38.2-1806\/"},{"id":70545,"section_number":"38.2-4700","catch_line":"What persons deemed insurance premium finance companies","order_by":null,"url":"\/38.2-4700\/"},{"id":78864,"section_number":"54.1-4008","catch_line":"Interest chargeable","order_by":null,"url":"\/54.1-4008\/"},{"id":83660,"section_number":"58.1-3018","catch_line":"Payment of local taxes on behalf of taxpayer by third party; tax payment agreements","order_by":null,"url":"\/58.1-3018\/"},{"id":78115,"section_number":"6.2-1500","catch_line":"Definitions","order_by":null,"url":"\/6.2-1500\/"},{"id":66519,"section_number":"6.2-1800","catch_line":"Definitions","order_by":null,"url":"\/6.2-1800\/"},{"id":76041,"section_number":"6.2-2200","catch_line":"Definitions","order_by":null,"url":"\/6.2-2200\/"},{"id":64100,"section_number":"6.2-309","catch_line":"Charges by banks and savings institutions on installment loans","order_by":null,"url":"\/6.2-309\/"}],"permalink":{"id":263351,"object_type":"law","relational_id":63345,"identifier":"6.2-303","token":"6.2\/I\/3\/2\/6.2-303","url":"\/6.2-303\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-303\/","token":"6.2\/I\/3\/2\/6.2-303","dublin_core":{"Title":"Contracts for more than legal rate of interest","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-303","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise permitted by law<\/span>, no contract<\/span> shall be made for the payment of interest on a loan<\/span> at a rate that exceeds 12 percent per year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Laws<\/span> that permit payment of interest at a rate that exceeds 12 percent per year are set out, without limitation, in: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Article 4 (§ 6.2-309<\/a> et seq.) of this chapter; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Chapter 15 (§ 6.2-1500<\/a> et seq.), relating to powers of consumer finance companies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Chapter 18 (§ 6.2-1800<\/a> et seq.), relating to short-term loans<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Chapter 22 (§ 6.2-2200<\/a> et seq.), relating to interest chargeable by motor vehicle title lenders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Section 36-55.31<\/a>, relating to loans<\/span> by the Virginia Housing Development Authority; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Section 38.2-1806<\/a>, relating to interest chargeable by insurance agents; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Chapter 47 (§ 38.2-4700<\/a> et seq.) of Title 38.2, relating to interest chargeable by premium finance companies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Section 54.1-4008<\/a>, relating to interest chargeable by pawnbrokers; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Section 58.1-3018<\/a>, relating to interest and origination fees payable under third-party<\/span> tax payment agreements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In the case of any loan<\/span> upon which a person<\/span> is not permitted to plead usury, interest and other charges may be imposed and collected as agreed by the parties. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any provision of this chapter that provides that a loan<\/span> or extension of credit may be enforced as agreed in the contract<\/span> of indebtedness, shall not be construed to preclude the charging or collecting of other loan<\/span> fees and charges permitted by law<\/span>, in addition to the stated interest rate. Such other loan<\/span> fees and charges need not be included in the rate of interest stated in the contract<\/span> of indebtedness. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The provisions of subsection A shall apply to any person<\/span> who seeks to evade its application by any device, subterfuge, or pretense whatsoever, including: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The loan<\/span>, forbearance, use, or sale of (i) credit, as guarantor, surety<\/span>, endorser, comaker, or otherwise; (ii) money; (iii) goods; or (iv) things in action; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The use of collateral<\/span> or related sales or purchases of goods or services, or agreements to sell or purchase, whether real or pretended; receiving or charging compensation for goods or services, whether or not sold, delivered, or provided; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The real or pretended negotiation, arrangement, or procurement of a loan<\/span> through any use or activity of a third person<\/span>, whether real or fictitious. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any contract<\/span> made in violation of this section is void and no person<\/span> shall have the right to collect, receive, or retain any principal, interest, fees, or other charges in connection with the contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Any contract<\/span> entered into on or after July 1, 2024, pursuant to which a person<\/span> receives a cash advance for assigning to a company or other entity<\/span> a portion of such person<\/span>’s rights to receive inheritance funds from a will that has been, or is anticipated to be, offered for probate in a circuit<\/span> court<\/span> of the Commonwealth shall be considered a loan<\/span>. Any funds such person<\/span> is obligated to pay under the terms of such contract<\/span> in addition to the total of the cash advance shall be considered interest. Such contract<\/span> shall be subject to the provisions of subsection A. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCONTRACTS FOR MORE THAN LEGAL RATE OF INTEREST (\u00a7 6.2-303)\n\nA. Except as otherwise permitted by law, no contract shall be made for the\npayment of interest on a loan at a rate that exceeds 12 percent per year.\n\nB. Laws that permit payment of interest at a rate that exceeds 12 percent per\nyear are set out, without limitation, in:\n\n 1. Article 4 (§ 6.2-309 et seq.) of this chapter;\n\n 2. Chapter 15 (§ 6.2-1500 et seq.), relating to powers of consumer\n finance companies;\n\n 3. Chapter 18 (§ 6.2-1800 et seq.), relating to short-term loans;\n\n 4. Chapter 22 (§ 6.2-2200 et seq.), relating to interest chargeable by\n motor vehicle title lenders;\n\n 5. Section 36-55.31, relating to loans by the Virginia Housing Development\n Authority;\n\n 6. Section 38.2-1806, relating to interest chargeable by insurance agents;\n\n 7. Chapter 47 (§ 38.2-4700 et seq.) of Title 38.2, relating to interest\n chargeable by premium finance companies;\n\n 8. Section 54.1-4008, relating to interest chargeable by pawnbrokers; and\n\n 9. Section 58.1-3018, relating to interest and origination fees payable under\n third-party tax payment agreements.\n\nC. In the case of any loan upon which a person is not permitted to plead usury,\ninterest and other charges may be imposed and collected as agreed by the\nparties.\n\nD. Any provision of this chapter that provides that a loan or extension of\ncredit may be enforced as agreed in the contract of indebtedness, shall not be\nconstrued to preclude the charging or collecting of other loan fees and charges\npermitted by law, in addition to the stated interest rate. Such other loan fees\nand charges need not be included in the rate of interest stated in the contract\nof indebtedness.\n\nE. The provisions of subsection A shall apply to any person who seeks to evade\nits application by any device, subterfuge, or pretense whatsoever, including:\n\n 1. The loan, forbearance, use, or sale of (i) credit, as guarantor, surety,\n endorser, comaker, or otherwise; (ii) money; (iii) goods; or (iv) things in\n action;\n\n 2. The use of collateral or related sales or purchases of goods or services,\n or agreements to sell or purchase, whether real or pretended; receiving or\n charging compensation for goods or services, whether or not sold, delivered,\n or provided; and\n\n 3. The real or pretended negotiation, arrangement, or procurement of a loan\n through any use or activity of a third person, whether real or fictitious.\n\nF. Any contract made in violation of this section is void and no person shall\nhave the right to collect, receive, or retain any principal, interest, fees, or\nother charges in connection with the contract.\n\nG. Any contract entered into on or after July 1, 2024, pursuant to which a\nperson receives a cash advance for assigning to a company or other entity a\nportion of such person’s rights to receive inheritance funds from a will\nthat has been, or is anticipated to be, offered for probate in a circuit court\nof the Commonwealth shall be considered a loan. Any funds such person is\nobligated to pay under the terms of such contract in addition to the total of\nthe cash advance shall be considered interest. Such contract shall be subject to\nthe provisions of subsection A.\n\nHISTORY: 1987, c. 622, \u00a7 6.1-330.55; 1997, c. 180; 2002, c. 897; 2010, cc. 477,\n794; 2020, cc. 1215, 1258; 2024, c. 728.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}