The Tennessee Department of Financial Institutions has announced the maximum effective formula rate of interest for the state. Commissioner Greg Gonzales stated that the rate is set at 11.75 percent per annum. This determination is based on a ceiling of 4 percent over the weekly average prime loan rate, which is currently 7.75 percent as published by the Federal Reserve on November 25, 2024.
Commissioner Gonzales noted that this rate will remain in effect until there is a change in the average prime loan rate as announced by the Federal Reserve Bank. The establishment of this rate is in accordance with Chapter 464, Public Acts of 1983, which mandates that the rate be announced weekly by the commissioner of Financial Institutions.
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For further information, contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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