408.120. Interest computed and paid, how.
Interest computed and paid, how.
408.120. The total interest for payment according toschedule may be added to the principal of the loan, but interestshall not be discounted or deducted from the principal of theloan, or paid or received at the time the loan is made, and shallnot be compounded. Loan contracts may be calculated and repaidas follows:
(1) A loan contract may provide for repayment in consecutivemonthly installments, but the first installment may be payable atany time within forty-five days from the date of the loan and noinstallment shall be substantially greater than any otherinstallment. Interest for any fractional portion of a month maybe computed for each elapsed day at one-thirtieth of the monthlyrate contracted for.
(2) A loan contract may provide for repayment as the partiesmay agree; however, any such loan contract shall provide for thepayment of simple interest on such loans at rates not to exceedthose authorized by sections 408.100 and 408.200.
(L. 1951 p. 875 § 408.032(a), A.L. 1981 S.B. 326)