Nebraska Usury Statues, the Time Price Sale Transaction, and the Installment Sales Act: An Analysis of Nebraska Finance Law

Ever since territorial days an ever-growing body of statutes relating to the law of usury has been accumulating in Nebraska until today there is found an example of each of the several kinds of usury statutes commonly found in other states. Litigation under the various acts has been plentiful, especially in the area of the distinction between the time price sale and the loan. As a result, the varied rules and interpretations developed both legislatively and judicially have, over the years, become somewhat confusing and conflicting. The purpose of this article is to discuss the various statutes and their coverage and application, to reconcile statutory conflicts, and to interpret the statutes in the light of the decided cases. I. Introduction II. The General Usury Act … A. The Act Generally … B. Usury in the Time Price Sale Financing Transaction III. Loan Exceptions to the General Usury Act … A. The Installment Loan Act … 1. Application Generally … 2. The Installment Loan Act Applied to Nonlicensees … B. The Industrial Loan Act … C. The Personal Loan Act … D. Credit Unions IV. Forbearance Exceptions to the General Usury Act … A. Revolving Charge Agreements Act … B. The Nebraska Installment Sales Act … 1. Generally … 2. The Previous Nebraska Decisions as Related to the Nebraska Installment Sales Act V. National Banks VI. The Rights of a Holder in Due Course of a Usurious Instrument VII. Who May Set Up Usury VIII. Conclusio