§ 12.1-31-02 — Engaging in or financing criminal usury business

1. A person is guilty of a class C felony if he knowingly engages in, or directly or indirectly
provides financing for, the business of making extensions of credit at such a rate of
interest that repayment or performance of any promise given in consideration thereof
is unenforceable through civil judicial process in this state.
2. Knowledge of unenforceability shall be presumed, in the case of a person engaging in
the business, if any of the following exist, and in the case of a person directly or
indirectly providing financing, if he knew any of the following:
a. It is an offense to charge, take, or receive interest at the rate involved.
b. The rate of interest charged, taken, or received is fifty or more per centum greater
than the maximum enforceable rate of interest.
c. The rate of interest involved exceeds forty-five per centum per annum or the
equivalent rate for a longer or shorter period.
3. Unless otherwise provided by law, the rate of interest is to be calculated according to
the actuarial method of allocating payments made on a debt between principal and
interest, pursuant to which a payment is applied first to the accumulated interest and
the balance is applied to the unpaid principal.
4. It is a defense to a prosecution under this section that the defendant was licensed or
otherwise authorized by the United States or by any state government to engage in the
business of making extensions of credit.
5. In this section:
a. An "extension of credit" means any loan, or any agreement, tacit or express,
whereby the repayments or satisfaction of any debt, whether acknowledged or
disputed, valid or invalid, and however arising, may or will be deferred.
b. "Debtor" means any person to whom an extension of credit is made, or who
guarantees the repayment of that extension of credit, or in any manner
undertakes to indemnify the creditor against loss resulting from the failure of any
person to whom that extension of credit is made to repay the same.
c. The repayment of any extension of credit includes the repayment, satisfaction, or
discharge in whole or in part of any debt or claim, acknowledged or disputed,
valid or invalid, resulting from or in connection with that extension of credit.