statutory cap

noun
UK /ˈstætʃ.ə.tər.i kæp/
US /ˈstætʃ.ə.tɔːr.i kæp/

A legal limit on how much something can be, set by a law.

The rent increase is subject to a statutory cap of five percent.


OTHER MEANINGS

2. A maximum amount of money that a law says can be charged or paid.

The statutory cap on damages kept the award below one million dollars.

3. A fixed upper limit written into a law for fees, rates, or penalties.

Late fees cannot exceed the statutory cap set by the state.

4. A legal restriction that stops a number from rising beyond a set point.

Lawmakers debated raising the statutory cap on campaign spending.