Usury

"Interest upon the loan or forbearance of money, goods or things will be at the legal rate of 6% unless a greater rate, not exceeding the rate set forth in section 45-101.03 (16%), is contracted. NEB. REV. STAT. § 45-102.

A maximum interest rate of 16% is valid on any loan or forbearance if the same is expressly agreed. NEB. REV. STAT. § 45-101.03. However, this limit does not apply to, among other things, loans made to any corporation, partnership or trust, or to any guarantor thereof or when the principal amount of the loan is $25,000.00 or more. NEB. REV. STAT. § 45-101.04.

Installment Loan Under the Nebraska Installment Loan Act, the time-price differential for any goods or services sold under an installment contract is capped at 18%. NEB. REV. STAT. § 45-338.

Under the Installment Loan Act, unpaid balance charges may not exceed 24% of the first $1,000.00 of unpaid balance and 21% of the remainder of the unpaid balance. NEB. REV. STAT. § 45-1024.

Usury There exists a defense of usury in Nebraska for debtors who contracted for interest exceeding the maximum amount. Individuals asserting the usury defense must have been charged an interest rate in excess of sixteen percent. NEB. REV. STAT. § 45-105.

In any action where the underlying contract is found to be usurious, the “plaintiff may recover only the same number of dollars contracted for at the time the original contract was entered into, plus interest not exceeding the maximum legal contract rate and costs.” NEB. REV. STAT. § 45-110.

Where a contract is found to be in violation of section 45-101.03, the creditor of such contract may only recover the principal owed under such contract. NEB. REV. STAT. § 45-105."

" The inhibitory provisions of the Installment Loan Act have been held to apply to both licensed and nonlicensed lenders. Powell v. Edwards, 75 N.W.2d 122 (Neb. 1956).

Farmland Enterprises, Inc. v. Schueman, 322 N.W.2d 665 (Neb. 1982) (“the usury laws of the State of Nebraska do not constitute an independent cause of action but only a defense to a cause of action”)

However, such defense is not available to corporations, partnerships, limited liability companies or trusts, guarantors of loans made to the aforementioned entities or borrowers of more than $25,000.00. See NEB. REV. STAT. § 45-101.04 (stating that the maximum legal rate set forth in section 45-101.03 does not apply to such entities or situations); see also, Farmland Enterprises, Inc. v. Schueman, 322 N.W.2d 665 (Neb. 1982); Blankenship v. Omaha Public Power District, 237 N.W.2d 86 (Neb. 1976). "