California, United States of America
The following excerpt is from Regents of University of California v. Superior Court, 131 Cal.Rptr. 228, 17 Cal.3d 533, 551 P.2d 844 (Cal. 1976):
3 The rule is stated thus: "It is also a general principle that when payment of full legal interest is subject to a contingency so that the lender's profit is wholly or partially put in hazard, the interest so contingently payable need not be limited to the legal rate, providing the parties are contracting in good faith and without the intent to avoid the statute against usury." (Thomassen v. Carr, supra, 250 Cal.App.2d 341, 346, 58 Cal.Rptr. 297, 301.)
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