ALABAMA.
In the pages of this chapter we shall note as briefly as possible, all the principal statutes that have been enacted in this country, from time to time, on the subject of usury ; though not in the order in which they were made, for that would involve us in confusion ; nor in the order of the estabhshment of the dif- ferent colonies, though that might seem the most regular method ; but in the alphabetical order of the present existing States, as the most familiar and of readier reference — only premising that most of the Colonial Statutes, and many of those of the subse- quent States, were closely fashioned upon the English model.
In Alabama, interest was allowed by Statute in 1805, at the rate of six per cent. In 1818, an act was passed permitting parties to stipulate in writing, for any rate of interest they chose to agree upon, on all bona fide contracts. The following year, how- ever, this statute was repealed by the act now in force, and established the legal rate of interest at eight per cent. In 1833, an amendment was made to this act ; but it did not affect the rate of interest, ARKANSAS. — OALIFOENIA. 7l and tKe act of 1819, with the amendment, is still the law of the State.^ On contracts reserving more than the legal rate, the principal only can be recovered.^ The present act in Arkansas was passed in Febru- ary, 1838, and fixed the rate of interest at six per cent., when no other rate is agreed upon ; but allows parties to stipulate in writing for interest, as high as ten per cent. All contracts reserving more are void, except negotiable paper in the hands of innocent holders, for valuable consideration, without notice. The lender is liable to no penalty, but the borrower, who has paid usury, may recover the same in an action to be brought therefor, within one year.^ Corrupt intent, however, is the gist of the action.* In California,