Columbus Insurance & Banking Co. v. First National Bank

Citations

• 73 Miss. 96

Syllabus

<p>1. Corporations. Usury. Repeal of cha/rter. Code 1857, art. 5, § 2, ch. 35, p. 292. Acts 1886, p. 35.</p> <p>A charge of interest at the rate of ten per cent, “discount” is in violation of the statute disallowing as usurious all charges of interest in excess of ten per cent. And under the provision of the code of 1857 declaring repealable all charters granted by act of the legislature, unless otherwise provided in such act, the right of a bank whose charter was granted while that code was in force, and contains no such provision, to charge ten per cent. “ discount,” under an authorization in its charter to stipulate for interest not exceeding ten per cent. ‘ ‘ discount, ” was taken away by the act of March 13, 1886, repealing all provisions allowing' corporations to take more than ten per cent, interest. Shotwell v. Railroad Go., 69 Miss., 541, cited.</p> <p>2. Accommodation Paper. Draft payable to drawer. Notice.</p> <p>One who discounts a draft payable to the drawer, and accepted by the drawee firm within whose course of business it is to issue .negotiable paper, is not affected with notice that the acceptance is for accommodation by the fact that the draft remains in the hands of the drawee. Bloom v. Seim, 53 Miss., 21, distinguished.</p> <p>3. Anticommerciad Statute. Such draft not within. Code 1892, § 3503.</p> <p>A draft payable to the order of the drawer is in effect payable to bearer, and is not within the statute (code 1892, § 3503) allowing defenses existing between the original parties to be availed of against a holder who acquired the paper in good faith, for value, before maturity. Bank, of Winona v. Wofford, 71 Miss., 711.</p>