408.210. Assignment of wages or compensation--excess over loan deemed interest.

Assignment of wages or compensation--excess over loan deemed interest.

408.210. The payment of four hundred dollars or less inmoney, credit, goods, or things in action, as consideration forany sale or assignment of, or order for the payment of wages,salary, commissions, or other compensation for services, whetherearned or to be earned, shall for the purpose of this chapter andany act regulating loans or punishing usury be deemed a loansecured by such assignment, and the amount by which such assignedcompensation exceeds the amount of such consideration actuallypaid shall for the purposes of this chapter and any actregulating loans or punishing usury be deemed interest or chargesupon such loan from the date of such payment to the date suchcompensation is payable, and such transaction shall be governedby and subject to the provisions of this chapter, provided thatnothing in this section contained shall be construed asauthorizing the assignment of wages, salaries, commissions, orother compensation for services not earned at the time when suchpurported sale or assignment thereof is made. In case anytransaction defined in this section results in a greater rate oramount of interest or charges than is permitted by law, allcontracts taken in connection with such transaction shall be voidand the lender shall have no right to collect, receive, or retainany principal, interest or charges.

(L. 1951 p. 875 § 408.034)