(a) Except as provided in this title, no person may charge more than 15 percent per year as interest on a debt or obligation, and no agreement to pay a rate of interest higher than 6 percent per year shall be enforceable unless the same is in writing and is signed by the party to be charged. The rate of interest when there is no written agreement with respect thereto shall be 6 percent per year, and such interest shall be presumed on overdue debts.
(b) Lending institutions are empowered to set, from time to time as the cost of money and the cost of lending operations warrant, a minimum charge for their loans where the normal interest is not equal to the average cost of making a loan. In no event may both a minimum charge and interest be collected.
(c) Banks that are authorized and licensed to conduct the business of banking in American Samoa are empowered to charge, contract for, and receive interest on loans at a rate up to 24% per year, provided that:
(1) The principal amount of the loan is $5,000.00 or less, and
(2) The principal amount of the loan and interest rate are disclosed in written agreement that is signed by the parties to be charged.
History: 1962, PL 7-23; 1963, PL 8-13; 1975. PL 14-16 § 3; 1978, PL 15-76 § 2; amd 1980, PL 16-67 § 1; 1980, PL 16-75 § 1, amd 2004, PL 28-24.