Eames v. Hardin

Citations

• 111 Ill. 634

Syllabus

<p>1. Mortgage — of a deed absolute in form — whether a purchase and a sale, or a loan — degree of proof required. To establish a deed absolute in form a mortgage, the proof must be clear and convincing. It may be shown by verbal testimony, but it must be entirely satisfactory, if not conclusive.</p> <p>2. Certain lots of a part owner having been sold at a judicial sale more than twelve months, he employed another to obtain the certificates of purchase and acquire the title, under an agreement on his part to purchase the same at an advance of $2000 on the sum required to be paid, besides the legal rate of interest, to enable him to perform a contract of sale to another. He also conveyed other land to the purchaser as a security for his performance of the contract to re-purchase the lots. It was held, that the advances made to acquire the title to the lots were not a loan, and the title so acquired was not in the nature of a mortgage, and that there was no usury in the transaction.</p> <p>3. One person may purchase land of another under an agreement to sell it back to the latter on a stipulated price in advance of its cost, and such a purchase and re-sale will be sustained when it is made in good faith, and is not resorted to to evade the usury laws, and the transaction is not tainted with fraud. And the conveyance of other property as a security for the repurchase, at the contract price, will not render the transaction a loan and mortgage. A party purchasing property for another may take additional security to protect himself against loss.</p> <p>4. Usury — profit on purchase of land for another. Where one party in good faith purchases property for another, to be conveyed to the latter on an advance of the price it cost, there can be no question of usury, and the title so acquired can not be held as a security for a loan. The profit on the purchase in .such case is not usury. Nor will the taking of security for the performance of the contract to’ purchase, render th