In a move that directly impacts the wallets of Tennesseans, the state's Department of Financial Institutions has declared a new maximum formula rate of interest. As today, Commissioner Greg Gonzales has set the rate at 12.50 percent per annum, reflecting a 4 percent increase over the current average prime loan rate of 8.50 percent.

This decision is in accordance with the federally published rate from the preceding day, yesterday, which places the weekly average prime loan rate by the Federal Reserve at 8.50 percent. The legislation, which dates back to 1983 under Chapter 464, Public Acts of Tennessee, necessitates this weekly adjustment and announcement from the commissioner's office.

Keeping pace with the economic changes, Commissioner Gonzales remarked, "the rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes," as stated in an official release from the Tennessee Department of Financial Institutions.