12 USC § 86 - Usurious interest; penalty for taking; limitations

---
identifier: "/us/usc/t12/s86"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 86 - Usurious interest; penalty for taking; limitations"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "86"
section_name: "Usurious interest; penalty for taking; limitations"
chapter_number: 2
chapter_name: "NATIONAL BANKS"
subchapter_number: "IV"
subchapter_name: "REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF NATIONAL BANKS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(R.S. § 5198.)"
---


# § 86. Usurious interest; penalty for taking; limitations

section 85 of this title*Provided*

The taking, receiving, reserving, or charging a rate of interest greater than is allowed by , when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back, in an action in the nature of an action of debt, twice the amount of the interest thus paid from the association taking or receiving the same: , That such action is commenced within two years from the time the usurious transaction occurred.

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**Source Credit**: (R.S. § 5198.)

## Editorial Notes

### Codification

R.S. § 5198 (less last sentence) derived from , , which was the National Bank Act. See .

Section is based on R.S. § 5198, less last sentence as added by , , which is classified to .