A court may find a Ponzi Scheme exists when the rate of return paid to a lender exceeds the legal rate of interest, within the given state.
While the minimum rate of interest standard would exclude investors who acted in good faith and received a rate of return within the legal rate of interest within that state, there will still be investors, however, who did not act with good faith or who received a return above the legal rate.
The demand loans will bear interest at the prime rate plus 2%, provided such rate shall in no event exceed the maximum legal rate of interest
permitted by applicable law.
In a circular issued by the BSP in 2013, the legal rate of interests
for loans or forebearances of money, goods, or credit, and for judgment awards, has been lowered to 6 percent per annum, from 12 percent per annum.