Most states have usury laws (usually statutes) governing the amount of interest that can be charged on a loan. Usury laws vary from state to state, but the elements of a usury claim are generally: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the exaction of a greater compensation than allowed by law for the use of the money by the borrower.

And interest means compensation for the use, forbearance, or detention of money. The term does not include time price differential, regardless of how it is denominated. The term does not include compensation or other amounts that are determined or stated by law not to constitute interest, or that are permitted to be contracted for, charged, or received in addition to interest in connection with an extension of credit.

Service charges, finance charges, and discount points are generally considered interest for purposes of usury. But contingent or uncertain charges are generally not considered interest.

In North Dakota, usury laws are codified under North Dakota Century Code (NDCC) Section 47-14, which governs the maximum interest rates that can be charged on loans. The legal interest rate in North Dakota is set at 6% per annum unless a different rate is contracted for in writing, in which case the interest rate must not exceed 5.5% over the base rate on corporate loans at the largest bank in the state of North Dakota. The usury limit can be higher for certain types of loans, such as those involving business or agricultural operations, or if the loan is unsecured and exceeds a specific amount. The elements of a usury claim in North Dakota include (1) the existence of a loan of money, (2) an absolute obligation to repay the principal amount, and (3) the lender charging an interest rate exceeding the maximum allowed by law. Charges that are considered interest include service charges, finance charges, and discount points, but do not include contingent or uncertain charges. Violations of usury laws can result in penalties, including forfeiture of all interest and charges on the loan, and in some cases, borrowers may recover up to twice the amount of interest paid.