Redemption, presumption of security

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A sale with right of redemption is a simulation when the surrounding circumstances show that the true intent of the parties was to make a contract of security. When such is the case, any monies, fruits or other benefit received by the buyer as rent or otherwise may be regarded as interest subject to the usury laws.

Acts 1993, No. 841, §1, eff. Jan. 1, 1995.


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