H06492026 Regular Session

Adds to existing law to provide for interest rates to be allowed by agreement subject to certain limitations.

MONEY OF ACCOUNT AND INTEREST -- Adds to existing law to provide for interest rates to be allowed by agreement subject to certain limitations.

MONEY OF ACCOUNT AND INTEREST

IntroducedIn CommitteeFloor VoteEnacted

Via committee: Business

STATEMENT OF PURPOSE

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This legislation prohibits usury in lending by non-regulated entities. Regulated entities, such as banks and credit card companies are otherwise regulated. Parties may agree to payment of interest and fees not to exceed 30%, or 10% over the prime rate as published by the federal reserve, whichever is higher.

FISCAL NOTE

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This legislation causes no increase or decrease in revenue, or additional expenditure of funds at the state or local level of government; therefore, this legislation has no fiscal impact.

BILL TEXT

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LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 649 BY BUSINESS COMMITTEE AN ACT1 RELATING TO MONEY OF ACCOUNT AND INTEREST; AMENDING CHAPTER 22, TITLE 28,2 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 28-22-103, IDAHO CODE, TO3 PROVIDE FOR INTEREST RATES TO BE ALLOWED BY AGREEMENT; AND DECLARING AN4 EMERGENCY AND PROVIDING AN EFFECTIVE DATE.5

Be It Enacted by the Legislature of the State of Idaho:6

SECTION 1. That Chapter 22, Title 28, Idaho Code, be, and the same is7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-8 ignated as Section 28-22-103, Idaho Code, and to read as follows:9 28-22-103. INTEREST RATE ALLOWED BY AGREEMENT. (1) Parties may agree10 in writing to the payment of any rate of interest and fees that do not exceed11 the greater of thirty percent (30%) or an amount that is ten (10) percentage12 points per year above the prime rate published by the federal reserve sys-13 tem in its statistical release, H.15 selected interest rates, for bank prime14 loans dated three (3) business days prior to the execution of the agreement.15 Interest must be allowed according to the terms of the agreement.16 (2) A loan agreement that is not usurious when made is lawful for the17 duration of the loan provided that the loan agreement is not substantially18 changed. This subsection shall not apply to loan renewals.19 (3) The provisions of this section shall not apply to a regulated20 lender, as defined in section 28-41-301, Idaho Code.21

SECTION 2. An emergency existing therefor, which emergency is hereby22 declared to exist, this act shall be in full force and effect on and after23 July 1, 2026.24