Colehour v. State Savings Institution

Citations

• 90 Ill. 152

Syllabus

<p>1. Usury—discounting paper. It is not usury to buy a note, in the usual course of business, at a discount greater than the rate of interest allowed by law.</p> <p>2. Where a debtor agrees with his creditor to give him a commission of $1500 if he will find a party who will advance the money then due and about to become due on his notes, secured by deed of trust, and thereby procure him a year’s extension of time in the payment, and the legal holder of the notes transfers them by delivery to another party, who agrees with the holder to take them and give the desired extension for $1500, and money enough to make the interest on the notes equal to ten per cent, and the holder pays such sums and procures the taking and discounting of the notes, the purchaser haying no knowledge of the terms upon which the extension had been granted by the legal holder of the notes, the party so taking and discounting the notes will not be chargeable with usury.</p> <p>3. Assignment—defense against assignee, in equity. In equity, on bill to foreclose a mortgage by the assignee of a note, secured by trust deed, the mortgagor may interpose any equitable defense he has against the original payee or mortgagee arising out of the original transaction; but this rule does not extend to a set-off of a debt due from the assignor to the mortgagor, arising out of a collateral or subsequent matter.</p> <p>4. Parties—to bill to foreclose. On bill to foreclose a deed of trust upon land selected subsequent to the making of the deed of trust, and taken possession of by the South Park commissioners, and condemned by legal proceedings, but not paid for, such commissioners are necessary parties.</p> <p>5. Foreclosure—of land taken for public use. Where mortgaged property is condemned and appropriated to public use, and the compensation awarded to the owner or mortgagor exceeds the sum due on the mortgage, and is not paid, it is not proper on bill to foreclose to order a sale of the premises. The sum found