Commercial Bank v. Auze

Citations

• 74 Miss. 609

Syllabus

<p>1. Contracts. Conflict of lews. Lex loci contractus. Lex solutionis.</p> <p>The law for the construction and enforcement of contra ets made in one state to be performed in another, is accurately and clearly stated in the case of Brown Brothers v. Freeland * Murdoch, 34 Miss., 181, and the syllabus to that case is commended.</p> <p>2. Usury. Code of 1880, 11141. Code of 1802, g 2348.</p> <p>Under the code of 1880, § 1141, if a lender stipulated for interest in excess of ten per centum, the contract was usurious and all interest was forfeited. The code of 1892, £ 2348, did not substantially change the law, by the provision that all interest shall be forfeited if the lender stipulates for or receives interest in excess of such rate; and so far as concerns the right of the lender to sue for and recover usurious interest paid, where the same was stipulated for in this state, the codes are substantially the same.</p> <p>3. Same. Penalty. Statute of limitations. Code 1892, § 2741.</p> <p>A suit for the recovery of interest paid upon a usurious contract, is not for the recovery of a penalty eo nomine within the statute (code 1892, l 2741), and is not barred thereby.</p> <p>4. Same. Appropriation of payments.</p> <p>Before such a suit can be maintained, the borrower must extinguish the principal debt due the lender, and payments will be applied to such debt until it is satisfied.</p> <p>5. Same. Security of loan. Mortgage on lands in (mother state.</p> <p>The execution of a mortgage on lands in another state, to secure a loan made in this state, does not make the contract one to be governed by the interest laws of such other state.</p>