Fidelity Savings Ass'n v. Shea

Citations

• 6 Idaho 405
• 55 P. 1022
• 1899 Ida. LEXIS 5

Syllabus

<p>Building and Loan Associations. — Where the borrower subscribes for shares in a loan association merely to obtain a loan, and is required to make monthly payments upon such shares, and by the terms of the contract the “maturity of the shares” extinguished the debt and cancels the stock, the borrower is a stockholder in fiction and not in fact, and the actual relation between the parties is only that of creditor and debtor.</p> <p>Beeation of Pakties. — A contract of loan, in which the debtor agrees to pay monthly six dollars, which is applicable to the satisfaction of the principal debt, and seven dollars and fifteen cents interest monthly, upon the debt of 5650, until the entire debt is paid, is equivalent to an interest charge of twenty-six and two-fifths per cent per annum, upon the principal of the loan, average time, and is usurious.</p> <p>Usury. — Under the laws of Idaho, building and loan associations cannot charge, dirctly or indirctly, usurious interest on loans.</p> <p>Same — Evasion of Usury Laws. — One who comes into Idaho and loans money upon real estate there situated cannot evade and defeat the usury laws of the state by stipulating in the contract of loan that the contract shall be tested, and its validity determined by the laws of another state, such stipulation being against public policy, and not binding upon the debtor.</p> <p>Same — Attorney Fee. — In a suit upon a usurious contract, it is error to allow the plaintiff under the stipulations of a mortgage securing the debt an attorney fee, as such fee is no part of the debt.</p> <p>(Syllabus by the court.)</p>