A BILL............MONEY-LENDING 273
(b) the amount of the loan,
(c) the nature of the consideration,
(d) the interest,
(e) the nature of the security taken, and
(f) where the loan wholly or partly superseeds the previous loan, the particular loan and the security therefor, if any.
Copy of memo to be supplied to debtor
- A copy of every such memorandum shall be delivered to the borrower within seven days from the date of the contract by the lender.
Transaction in contravention of Sec. 23 or 24 void
- A contract or security in which it is proved that the memorandum was not signed by the borrower before the money was lent or before the security was given as the case may be or that a copy thereof was not sent to the borrower within seven days of the making of the contract as provided *section 24 be inserted of this Act, shall be void.
Agreement to pay compound interest void
- Any contract made after the commencement of this Act for the loan of money by a money-lender shall be void in so far as it provided directly or indirectly for the payment of compound interest or for the rate of interest being increased by reason of any default in the payment of sums due under the contract, and he shall not be entitled to any interest:
Provided that provision may be made by any such contract that if default is made in the payment upon the due date, of any sum payable to the money-lender under the contract, whether in respect of principal or interest, the money-lender shall be entitled to charge simple interest on that sum from the date of the default until the sum is paid, at a rate not exceeding the rate payable in respect of the principal apart from any default, and any interest so charged shall not be reckoned for the purpose of this Act as part of the interest charged in respect of the laon.
- Section ‘23 or’ be inserted.—Editors