Downey v. Beach

Citations

• 78 Ill. 53

Syllabus

<p>1. Usury—penalty to secure prompt payment, not usurious. A provision in a promissory note for the payment of thirty per cent interest per annum after maturity, as liquidated damages for non-payment when due, if inserted for the purpose of securing prompt payment, does not render the transaction usurious.</p> <p>2. Penalty—relief in equity against. Where a party gives his promissory note for money borrowed, payable in one year, with ten per cent interest, and with thirty per cent per annum interest after maturity, if not paid when due, as liquidated damages, a court of equity will not relieve him from the penalty, where the payee has practiced no deception and done no act to mislead him and induce him to make the note. His ignorance that the note contained such a provision, when he was able to read the same, affords no ground for equitable relief.</p>