Rate is based on a ceiling of 4% over average prime rate loan

Nashville – Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 12.25% per annum.

The rate is based on a ceiling of 4% over the weekly average prime loan rate of 8.25% as published by the Fed July 10. Commissioner Gonzales said the rate remains in effect until the average prime loan rate as announced by the Fed Bank changes.

Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.

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