Usury in Missouri

Variable rates and negative amortization

Variable rates and negative amortization deeds of trust are allowed in Missouri. ALTA endorsements 6.0, 6.1 and 6.2 are filed for use in Missouri.

Participating or shared appreciation mortgages

Shared appreciation mortgages are allowed in Missouri. There does not appear to be any case law which would indicate that such a feature is unconscionable.

Usury

Parties may agree, in writing, to a rate of interest not exceeding ten percent per annum. However, when the "market rate" exceeds 10 percent per annum, parties may agree in writing to a rate of interest not exceeding the "market rate." The "market rate" is defined as being equal to the monthly index of long term United States government bond yields for the second preceding calendar month prior to the beginning of the calendar quarter, plus an additional three percentage points rounded off to the nearest tenth of one percent. (Section 408.030 Missouri Revised Statutes)

Unlimited interest may be charged under the following conditions:

1. Loan to a corporation
2. Business loan of five thousand dollars or more
3. Real estate loan other than residential real estate loans and loans of less than five thousand dollars secured by real estate used for agricultural activity
4. Loan of five thousand dollars or more secured solely by certificates of stock, bonds, bills of exchange, certificates of deposit, warehouse receipts or bills of lading pledged as collateral for the repayment of such loans. (Section 408.035 Missouri Revised Statutes)