Virginia borrowed money from G & L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G& L collect from Virginia?
a.
G & L will be able to collect the principal plus 20% interest per year.
b.
G & L will be able to collect the principal but not any interest.
c.
G & L will not be able to collect either the principal or interest.
d.
Any one of the above may be correct. The answer depends on the particular state law.
