                                 CODE OF VIRGINIA

CONTRACTS FOR MORE THAN LEGAL RATE OF INTEREST (§ 6.2-303)

A. 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.

B. Laws that permit payment of interest at a rate that exceeds 12 percent per
year are set out, without limitation, in:

   1. Article 4 (&#xA7; 6.2-309 et seq.) of this chapter;

   2. Chapter 15 (&#xA7; 6.2-1500 et seq.), relating to powers of consumer
   finance companies;

   3. Chapter 18 (&#xA7; 6.2-1800 et seq.), relating to short-term loans;

   4. Chapter 22 (&#xA7; 6.2-2200 et seq.), relating to interest chargeable by
   motor vehicle title lenders;

   5. Section 36-55.31, relating to loans by the Virginia Housing Development
   Authority;

   6. Section 38.2-1806, relating to interest chargeable by insurance agents;

   7. Chapter 47 (&#xA7; 38.2-4700 et seq.) of Title 38.2, relating to interest
   chargeable by premium finance companies;

   8. Section 54.1-4008, relating to interest chargeable by pawnbrokers; and

   9. Section 58.1-3018, relating to interest and origination fees payable under
   third-party tax payment agreements.

C. 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.

D. 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.

E. The provisions of subsection A shall apply to any person who seeks to evade
its application by any device, subterfuge, or pretense whatsoever, including:

   1. 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;

   2. 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

   3. The real or pretended negotiation, arrangement, or procurement of a loan
   through any use or activity of a third person, whether real or fictitious.

F. 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.

G. 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&#8217;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.

HISTORY: 1987, c. 622, § 6.1-330.55; 1997, c. 180; 2002, c. 897; 2010, cc. 477,
794; 2020, cc. 1215, 1258; 2024, c. 728.