Burt v. Brashears

Citations

• 118 Miss. 339
• 79 So. 182

Syllabus

<p>1„ Us-aBT. Note. Provision for interest. “Stipulate.”</p> <p>A. note dated February, 1912, and payable January 1, 1913, providing for ten per cent, interest “straight until paid,” is usurious as it contemplates the payment of ten per cent, interest for a period of time less than a year and therefore “stipulates” for an unlawful rate of interest contrary to the plain terms of the statute.</p> <p>2. Usubt. Usurious interest part of principal of other note.</p> <p>Where the maker of a usurious note gives the payee another note, the principal of which includes the usurious interest due on the first note. In such case the usurious interest included in the principal of the second note should be deducted therefrom in ascertaining the amount of the principal due on such notes.</p> <p>3. Usury. Effect of usury. Provision for attorney fees.</p> <p>Where a promissory note provided that, “in the event default is made in the payment of this note at maturity and it is placed in the hands of an attorney for collection or suit is brought on same, then an additional amount of ten per cent, on the principal and interest of this note shall be added to the same as collection fees.” The payee having turned over the note to a lawyer on default for collection is'entitled to an additional ten per cent, on the principal, although interest was forfeited because of usury.</p> <p>4. Usury. Forfeiture of principal. Interest.</p> <p>Under Code 1906, section 2678 (Hemingway’s Code, section 2070), providing that on a usurious note, “all interest shall be forfeited.” Where the principal of a usurious note is a valid obligation, only the usurious interest is forfeited.</p>