Legal Question in Business Law in California

The only NON-exception to the otherwise worthless usery law in California is interest charged for refraining from collecting on a debt, which is somehow (don't ask me) different from interest on a debt. Unfortunately your question is so sloppy that we can't tell if you borrowed $400k or $40K, so there is no way to calculate if it is userious, but if the rate exceeds the usery rate this is a rare example of a situation that is actually illegal under the usery law.

The other attorney is right on point here. Did you borrow $400k or $40k? Try reposting your question again with the details. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

$2,000 a day is $720,000 a year, even using the 360-day calculation basis sometimes used. That wout be usurious on a loan of $40,000, or $400,000, or $4,000,000!

Usury laws apply to both loans and agreements to forbear. Your situation is a forbearance.

Mr. Whipple is correct. Usury applies to loans and forbearances. You have a forbearance, and it appears that the amount charged is usurious.

There are heavy penalties for usury. All interest payments become null and void, if the interest is usurious. Not even an earlier legal rate can be charged. All of the earlier interest payments are applied to outstanding principal. There are also the remedies of money had and received, and treble damages for three times the interest paid within the year prior to bringing a lawsuit for usury.

I suggest you speak to an attorney.