{"data":{"id":"us-ky/krs-360.010","jurisdiction":"us-ky","citation":"KRS 360.010","heading":"Legal interest rate -- Agreement for higher rate -- Contract or obligation --","body":"Interest after default -- Minimum charge for negotiated bank loan.\n(1) Except as provided in KRS 360.040, the legal rate of interest is eight percent (8%)\nper annum, but any party or parties may agree, in writing, for the payment of\ninterest in excess of that rate as follows:\n(a) At a per annum rate not to exceed four percent (4%) in excess of the discount\nrate on ninety (90) day commercial paper in effect at the Feder al Reserve\nBank in the Federal Reserve District where the transaction is consummated or\nnineteen percent (19%), whichever is less, on money due or to become due\nupon any contract or other obligation in writing where the original principal\namount is fifteen thousand dollars ($15,000) or less; and\n(b) At any rate on money due or to become due upon any contract or other\nobligation in writing where the original principal amount is in excess of\nfifteen thousand dollars ($15,000).\n(2) Any party or parties to a co ntract or obligation described in subsection (1) of this\nsection, and any party or parties who may assume or guarantee the contract or\nobligation, shall be bound, subject to KRS 371.190, for the rate of interest as is\nexpressed in the contract, obligation,  assumption, or guaranty, and no law of this\nstate prescribing or limiting interest rates shall apply to the agreement or to any\ncharges which pertain thereto or in connection therewith.\n(3) The party entitled to be paid in any written contract or obligati on specifying a rate\nof interest shall be entitled to recover interest after default at the rate of interest as is\nexpressed in the contract or obligation prior to the default and that interest rate shall\nbe the interest rate for the purpose of KRS 360.040 (3). If the interest rate expressed\nin the contract or obligation is a variable rate, the interest rate after default and until\njudgment shall be calculated and adjusted as provided in the contract or obligation\nprior to the default.\n(4) The party entitled  to be paid in any written contract or obligation not specifying a\nrate of interest or to which no interest rate otherwise applies shall be entitled to\nrecover interest after default and until judgment at the legal rate of interest.\n(5) Nothing in this sec tion shall be construed to amend, repeal, or abrogate any other\nlaw of this state pertaining to any particular types of transactions for which the\nmaximum rate of interest is specifically prescribed or provided.\n(6) Any state or national bank may charge te n dollars ($10) for any loan negotiated at\nthe bank in this state, even if the legal interest does not amount to that sum.","path":["KRS Chapter 360"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47989","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:53Z","sha256":"2af460de2bdfa7fb64a4213998ddcb8f5a6a24e919f09bffae5b9fc120841336","source_id":"us-ky","stale":false,"prev":"us-ky/krs-36.480","next":"us-ky/krs-360.020"},"notice":"GroundRules: Original legal text. Not legal advice."}