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- The state of New Jersey has established a maximum interest rate of 12 percent for loans occurring in the "Garden State." Matt borrows $10,000 from Tony to pay off a gambling debt. Both are residents of New Jersey. They sign a contract obligating Matt to pay 25 percent interest on the loan. Later, Matt learns of New Jersey's usury law and sues Tony. What is the nature of the contract between Matt and Tony?A) It is illegal because it violates gambling statutes.B) It is legal because both parties were competent when the contract was signed.C) The contract is void because it violates state usury law.D) The contract is void because it is a contract for a loan between two individuals.