Case $4$

Michael, who is a new immigrant, borrowed money to a lending company, AB

Finance Ltd$.$ In their conversation, Michael told the agent of the lending company

that he is a new immigrant, and he is in dire need of money to support his family

back home. The loan agreement stipulates that the annual interest rate is sixty$-$five

$(65\%)$ and the term of the contract is one year.

Issues: Is the annual interest rate enforceable or unenforceable? In the

absence of stipulation, the applicable interest rate under the law applies.

Please state your reasons.