Georgia borrowed money from R & O Lending at 35% interest per year. The state maximum interest rate is 20% per year. Georgia defaulted on the loan. What amount can R & O collect from Georgia?
a. R & O will be able to collect the principal but not any interest.
b. All of these answers may be correct. The answer depends on the particular state law.
c. R & O will not be able to collect either the principal or interest.
d. R & O will be able to collect the principal plus 20% interest per year.
Answer: B
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