Carolina Savings Bank v. Parrott

Citations

• 30 S.C. 61
• 8 S.E. 199
• 1888 S.C. LEXIS 173

Syllabus

<p>1. A note dated in December and payable the following November for a stated sum with interest at the rate of 10 per cent, per annum, legally draws 10 per cent, until maturity, but only 7 per cent, (the legal rate) after maturity.</p> <p>2. It is not usury to take interest in advance where the parties so agree; but whore the note is payable at-a day certain for a sum certain, with interest from date at the rate of 10 per cent, per annum, a discount of interest on this interest renders the note usurious.</p> <p>3. As the statute allows 10 per cent, interest only when so expressed in a ■written agreement, and as there was no written agreement here for 10 per cent, interest on interest, the discount was usurious — at least to the extent of the 3 per cent, excess over 7, the lawful rate.</p> <p>4. Neither the absence of a corrupt and wilful purpose to evade the usury law, nor the usage of banks so to deal, can relieve this transaction of the legal consequences of the usury committed in the charge made.</p> <p>5. Plaintiff should have had judgment only for the principal sum, without interest or costs, and defendant should have been allowed his counter-claim to the extent of double the 3 per cent, paid in excess of 7 per cent., such excess being usurious.</p>