On Apr. 8, TN LEG enacted bill re contracted rate for industrial loans.
TN LEG enacted bill SB 694 (HB 775) to increase the maximum permitted contracted effective interest rate by an industrial loan and thrift company certain unpaid balance.
Increases, from 30 to 36%, maximum permitted effective interest rate that may be contracted on an unpaid principal where financed amount must be $100 or more.
Additionally, amendments increase the maximum permitted acquisition charge for making a loan from 10% to 12.5%, where the amount financed is $100 or more.
Also amended to remove TN FIN 45-5-401(c)(3) and TN FIN 45-5-301(2)(A)(iii) related to the $5k financing and effective rate of no greater than 24% per year.
Legislative History
On Feb. 10, 2025, bill introduced in Senate; on Mar. 6, 2025, bill passed in Senate.
On Mar. 10, 2025, bill introduced in House; on Mar. 17, 2025, bill was passed in House.
On Mar. 19, 2025, bill sent to governor; on Mar. 25, 2025, bill approved by governor.
On Apr. 8, 2025, SB 694 (HB 775) became Public Chapter 70, effective Jul. 1, 2025.
Effectiveness
Bill SB 694 (HB 775), aka, Public Chapter 70, takes effect Jul. 1, 2025, and applies to contracts or agreements entered into, amended, or renewed on or after that date.
