408.080. Interest may be paid on interest--compounding limited to once a month--prohibited for certain loans.
Interest may be paid on interest--compounding limited to once amonth--prohibited for certain loans.
408.080. Parties may contract, in writing, for the paymentof interest upon interest; but the interest shall not becompounded more often than once a month. Where a different rateis not expressed, interest upon interest shall be at the samerate as interest on the principal debt. Loans governed bysection 408.035 are not subject to the provisions of thissection.
(RSMo 1939 § 3232, A.L. 1982 H.B. 1341, et al., A.L. 1992 S.B. 688)