Executive Order 1860

Fixing the Rate of Interest on Money.

By virtue of the authority vested in me I hereby establish the following Executive Order for the Canal Zone:

Section I. No rate of interest shall be allowed in excess of six percentum per annum upon any contract for the use or detention of money, unless the same is in writing and the interest agreed upon must not exceed twelve percentum per annum.

Section II. All contracts whatsoever which may in any way, directly or indirectly, violate the preceding section by stipulating for a greater rate of interest than twelve per centum per annum, shall be void and of no effect for the amount or value of the interest only; but the principal sum of money or value of the contract may be received and recovered.

Section III. When the interest received or collected for the use or detention of money exceeds the rate of twelve percentum per annum, it shall be deemed to be usurious, and the person or persons paying the same, or their legal representatives, may recover from the person, firm or corporation receiving such interest, the amount of the interest so received or collected, in any court of competent jurisdiction, within two years from the date of the payment of such interest.

Section IV. No evidence of usury shall be received on the trial of any case unless the same shall be pleaded and verified by the affidavit of the party wishing to avail himself of such defense.

Section V. This Order shall take effect thirty days from and after its publication in the Canal Record.

Woodrow Wilson.

The White House

11 Nov., 1913.