The U.S. Court of Appeals for the Eighth Circuit recently upheld the enforceability and clarity of a 365/360 day interest calculation clause.

As noted in an earlier posting regarding this case, the U.S. District Court for the Eastern District of Missouri had previously dismissed a class action alleging that the lender breached its contracts with the plaintiff class of borrowers by imposing a full year's interest charges in a 360 day period while the variable rate clause applied the rate "per annum."  On appeal, the Court of Appeals affirmed the District Court's findings that  the use of a "per annum" rate is not inherently inconsistent with a clear 365/360 interest calculation clause.