CHAPTER III – OF LOAN ON INTEREST
Art. 31. It is lawful to stipulate interest for a simple loan whether of money or other moveable things.
Art. 32. The interest is either legal or conventional.
The legal interest is fixed by the laws of this territory, to wit:
At five per cent. on all sums which are the object of a judicial demand, whence this interest is called judicial interest: and six per cent. for the interest of sums discounted by banks.
The amount of the conventional interest cannot exceed ten per cent. the same must be fixed in writing and testimonial proof of it is not admitted in any case.
Art. 33. Interest may be stipulated in consideration of a stock or fund of money which the lender agrees not to ask.
In such a case the loan goes by the appellation of constitution of an annuity or rent charge.
Art. 34. This annuity may be either perpetual or for life.
Art. 35. The amount of annuity for life can in no case exceed the double of the conventional interest.
The amount of perpetual annuity cannot exceed the conventional interest.
Art. 36. Constituted annuity is essentially redeemable.
The parties may only agree that the same shall not be redeemed prior to a time which cannot exceed ten years, or without having warned the creditor a time before, which they shall limit.
Art. 37. The debtor of a constituted annuity may be compelled to redeem the same,
1st. If he ceases fulfilling his obligations during three years;
2d. If he does not give to the lender the sureties promised by the contract.
Art. 38. If the debtor should fail or be in a state of insolvency the capital of the constituted annuity becomes exigible; but only up to the amount for which the creditor of such annuity is actually employed by contribution with the other creditors.
Art. 39. The debtor may still be compelled to redeem by his security within the time which has been fixed in the contract if any time has been fixed, or after ten years if no mention has been made in the act, of the time.
Art. 40. The interest of the sums lent and the arrears of constituted and life annuity, cannot bear interest but from the day a judicial demand of the same has been made by the creditor and when interest is due for at least one whole year.