§ 892. — Making extortionate extensions of credit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC892]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 42--EXTORTIONATE CREDIT TRANSACTIONS
Sec. 892. Making extortionate extensions of credit
(a) Whoever makes any extortionate extension of credit, or conspires
to do so, shall be fined under this title or imprisoned not more than 20
years, or both.
(b) In any prosecution under this section, if it is shown that all
of the following factors were present in connection with the extension
of credit in question, there is prima facie evidence that the extension
of credit was extortionate, but this subsection is nonexclusive and in
no way limits the effect or applicability of subsection (a):
(1) The repayment of the extension of credit, or the performance
of any promise given in consideration thereof, would be
unenforceable, through civil judicial processes against the debtor
(A) in the jurisdiction within which the debtor, if a
natural person, resided or
(B) in every jurisdiction within which the debtor, if other
than a natural person, was incorporated or qualified to do
business
at the time the extension of credit was made.
(2) The extension of credit was made at a rate of interest in
excess of an annual rate of 45 per centum calculated according to
the actuarial method of allocating payments made on a debt between
principal and interest, pursuant to which a payment is applied first
to the accumulated interest and the balance is applied to the unpaid
principal.
(3) At the time the extension of credit was made, the debtor
reasonably believed that either
(A) one or more extensions of credit by the creditor had
been collected or attempted to be collected by extortionate
means, or the nonrepayment thereof had been punished by
extortionate means; or
(B) the creditor had a reputation for the use of
extortionate means to collect extensions of credit or to punish
the nonrepayment thereof.
(4) Upon the making of the extension of credit, the total of the
extensions of credit by the creditor to the debtor then outstanding,
including any unpaid interest or similar charges, exceeded $100.
(c) In any prosecution under this section, if evidence has been
introduced tending to show the existence of any of the circumstances
described in subsection (b)(1) or (b)(2), and direct evidence of the
actual belief of the debtor as to the creditor's collection practices is
not available, then for the purpose of showing the understanding of the
debtor and the creditor at the time the extension of credit was made,
the court may in its discretion allow evidence to be introduced tending
to show the reputation as to collection practices of the creditor in any
community of which the debtor was a member at the time of the extension.
(Added Pub. L. 90-321, title II, Sec. 202(a), May 29, 1968, 82 Stat.
160; amended Pub. L. 103-322, title XXXIII, Sec. 330016(1)(L), Sept. 13,
1994, 108 Stat. 2147.)
Amendments
1994--Subsec. (a). Pub. L. 103-322 substituted ``fined under this
title'' for ``fined not more than $10,000''.
Section Referred to in Other Sections
This section is referred to in sections 894, 1961, 2516 of this
title.
