Page:United States Statutes at Large Volume 88 Part 2.djvu/243

 88 STAT. ]

PUBLIC LAW 93-501-OCT. 29, 1974

1559

described in subsection (a), the taking, receiving, reserving, or charging a greater rate of interest than is allowed by subsection (a), when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest 1

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interest paymerit recovery.

has been paid, the person who paid it may recover m a civil action commenced in a court of appropriate jurisdiction not later than two years after the date of such payment, an amount equal to twice the jimount of the interest paid from the State bank taking or receiving such interest.". SEC. 203. Title IV of the National Housing Act (12 U.S.C. 17241730(d)) is amended by adding at the end thereof the following: ''SEC. 412. (a) If the applicable rate prescribed in this section savings and loan exceeds the rate an insured institution would be permitted to charge rate°charges/toi12 u in the absence of this section, such institution may in the case of tation s e 1730e. business or agricultural loans in the amount of $25,000 or more, notwithstanding any State constitution or statute, which is hereby preempted for the purposes of this section, take, receive, reserve, and charge on any loan or discount made, or upon any note, bill of exchange, or other evidence of debt, interest at a rate of not more than 5 per centum in excess of the discount rate on ninety-day comuiercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the institution is located, and such interest may be taken in advance, reckoning the days for which the note, bill, or Interest overother evidence of debt has to run. charge, forfeiture. "(b) If the rate prescribed in subsection (a) exceeds the rate such institution would be permitted to charge in the absence of this section, and such State fixed rate is thereby preempted by the rate described in subsection (a), the taking, receiving, reserving, or charging a greater I'ate of interest than that prescribed by subsection (a), when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has ment recovery. interest pay been paid, the person who paid it may recover, m a civil action commenced in a court of appropriate jurisdiction not later than two years after the date of such payment, an amount equal to twice the amount of the interest paid from the institution taking or receiving such interest.". SEC. 204. Section 308 of the Small Business Investment Act of 1958, as amended (15 II.S.C^. ^61), is amended by adding at the end thereof ^^ use the following: Small b u s i n e s s investment com'''(h)(1) I n order to facilitate the orderly and necessary flow of ^^^^^^^^,,^,^^ long-term loans and equity funds to small business concerns, as defined panles"lnte^est in the Small Business Act, if the maximum interest rate permitted by charges, umita the Small Business Administration exceeds the rate a small business 'Tsusc 631 investment company would be permitted to charge in the absence of note. this subsection, such small business investment company may in the case of business loans in the amount of $25,000 or more, notwithstanding any State constitution or statute, which is hereby preempted for the purposes of this section, take, receive, reserve, and charge on any such loan, interest at a rate of not more than 5 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the small business investment company is located. Interest overcharge, forfeiture. "(2) If the rate prescribed in paragraph (1) exceeds the rate such small business investment company would be permitted to charge in the absence of this subsection, and such State fixed rate is thereby preempted by the rate described in paragraph (1), the taking, receiving, reserving or charging a greater rate than is allowed by paragraph (1),

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