In a move that impacts borrowers and lenders alike, Tennessee has updated its maximum effective formula interest rate. As of today, the Tennessee Department of Financial Institutions, led by Commissioner Greg Gonzales, declared the rate to be 11.50 percent per annum. This adjustment reflects a 4 percent rise over the weekly average prime loan rate, which currently stands at 7.50 percent, as reported by the Federal Reserve yesterday, according to the department's announcement.
Commissioner Gonzales emphasized that this number is not static, stating, "The rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes." This system of weekly updates comes from a mandate enacted through Chapter 464, Public Acts of 1983, which demands that the commissioner of Financial Institutions set forth this announcement on a weekly basis.
The Financial Institutions department's Public Information Officer, Alica Owen, is the contact person for more detailed information on the announcement. Inquiries can be made directly at (615) 289-4738, where Owen, or a representative of the department, can provide further clarity on this latest financial development.
