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Can you summarize NJST 31:1-1?
Contract rate; rate on mortgages on dwellings and other loans; computation of interest or discount; determination of rates
Short Summary
This legal document, part of the New Jersey General and Permanent Statutes, governs the contract rate, rate on mortgages on dwellings and other loans, computation of interest or discount, and determination of rates in the state of New Jersey. It establishes limitations on the amount of interest that can be charged on loans, with specific rates specified for different types of loans. The Commissioner of Banking has the authority to establish interest rate ceilings for loans secured by a first lien on real property, based on the Monthly Index of Long Term United States Government Bond Yields. The document also allows for different interest rates based on the ratio of the loan to the appraised value of the real property. Certain exemptions are provided for loans above a certain amount and for loans made by specific financial institutions or government organizations. The document also outlines the computation of interest or discount on loans with periods of less than 1 year, allowing for daily or monthly basis calculations. The Commissioner of Banking is responsible for making, amending, and rescinding regulations related to interest rates, taking into account various factors such as the state of the economy and prevailing market conditions. Overall, this document aims to regulate interest rates and ensure fair lending practices in the state of New Jersey.
Whom does it apply to?
All persons involved in loan transactions in the state of New Jersey
What does it govern?
Contract rate; rate on mortgages on dwellings and other loans; computation of interest or discount; determination of rates
What are exemptions?
Loans in the amount of $50,000.00 or more, except loans where the security given is a first lien on real property on which there is erected or to be erected a structure containing one, two, three, four, five or six dwelling units, a portion of which structure may be used for nonresidential purposes. Loans or advances of credit made by savings and loan associations, banking institutions, or any Department of Housing and Urban Affairs or Federal Housing Administration approved mortgages which are subsequently purchased, in whole or in part, by the Federal Housing Administration, Veterans Administration, Farmers Home Administration, Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, and any successor thereof or by any organization authorized by the Emergency Home Finance Act of 1970 to purchase such loans or by any State or Federal governmental or quasi-governmental organizations.
What are the Penalties?
Not specified in the document
Jurisdiction
New Jersey