How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 53678
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I have a 501(c)3 religious radio station and I wanted to know

Resolved Question:

I have a 501(c)3 religious radio station and I wanted to know if it is legal to borrow privately from individuals and offer to pay them back double when and if the radio station receives donations enough to pay them back?
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.

Good evening. This is going to run afoul of the usury rules and possibly put the lenders in position of being unable to collect the loans and/subject to other penalties.



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 5 years ago.
Is what you are saying that the usury laws would be against the lender in this situation?
Expert:  Richard replied 5 years ago.

Yes, the usury laws protect the borrower against usurial interest rates.

Customer: replied 5 years ago.
But is it illegal for me to borrow under these conditions....(last question)
Expert:  Richard replied 5 years ago.
You can borrow, but you don't want to put your lenders in the position where the loans are illegal....because then if you know this and don't tell them, you could also be sued. What you should do instead is to insert a usury savings provision that says the interest rate will be the lesser of what you suggest or the maximum interest rate allowed by law.
Richard and other Business Law Specialists are ready to help you

Related Business Law Questions