Ross v. Barnett

District Court of Appeal of Florida

Ross v. Barnett

422 So. 2d 1040, 1982 Fla. App. LEXIS 21855

CourtDistrict Court of Appeal of Florida

DecidedNovember 30, 1982

DocketNo. 82-854

StatusPublished

This text of 422 So. 2d 1040 (Ross v. Barnett) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ross v. Barnett, 422 So. 2d 1040, 1982 Fla. App. LEXIS 21855 (Fla. Ct. App. 1982).

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Opinion

FERGUSON, Judge.

Section 687.03(5)(a), Florida Statutes (1979) which raised the legal interest rate ceiling from 10% to 18% has retroactive application to loans made prior to July 1, 1979, where by terms of the contract the lender has the legal right to adjust the interest rate.¹ U.P.C., Inc. v. Intercontinental Bank, 410 So.2d 554 (Fla. 3d DCA 1982). The $75,000 promissory note in this case, executed in 1975 provides for a fluctuating rate of interest (between 6% and 10%) pegged to a prime interest rate and is, therefore, an adjustable interest rate note which is excepted from the usury statute, notwithstanding the fact that the interest rate cannot exceed 10%. If, as contended, the appellees have exacted interest in excess of 10%, but less than 18%, the appellants have an action for breach of contract, but the interest charged in excess of 10% is not usurious.

Summary judgment granted on the usury claim is AFFIRMED.

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FERGUSON, Judge.

Section 687.03(5)(a), Florida Statutes (1979) which raised the legal interest rate ceiling from 10% to 18% has retroactive application to loans made prior to July 1, 1979, where by terms of the contract the lender has the legal right to adjust the interest rate.¹ U.P.C., Inc. v. Intercontinental Bank, 410 So.2d 554 (Fla. 3d DCA 1982). The $75,000 promissory note in this case, executed in 1975 provides for a fluctuating rate of interest (between 6% and 10%) pegged to a prime interest rate and is, therefore, an adjustable interest rate note which is excepted from the usury statute, notwithstanding the fact that the interest rate cannot exceed 10%. If, as contended, the appellees have exacted interest in excess of 10%, but less than 18%, the appellants have an action for breach of contract, but the interest charged in excess of 10% is not usurious.

Summary judgment granted on the usury claim is AFFIRMED.

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422 So. 2d 1040, 1982 Fla. App. LEXIS 21855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-barnett-fladistctapp-1982.

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