Anatocism
A Law Dictionary, Adapted to the Constitution and Laws of the United States · John Bouvier · 1839
A Law Dictionary, Adapted to the Constitution and Laws of the United States
in the ctril law, is usury which consists in taking interest on interest, or receiving compound interest. This is forbidden. Code, lib.
4, t. 32, 1. 30.
Courts of equity have considered contracts for compounding interest illegal and within the statute of usury.
Cas. T. Talbot, 40; et vide Com. Rep. 349; Mass. 247; 1 Ch. Cas. 129; 2 Ch. Cas. 35. And contra 1 Vern. 190.
But when the interest may lawfully agree to turn such interest into principal, so as to carry interest in futuro. Com. on Usury, ch.
2, s. 14, p. 146 et seq.