Ford v. Washington National Building & Loan Investment Ass'n

Citations

• 10 Idaho 30
• 76 P. 1010
• 1904 Ida. LEXIS 4

Syllabus

<p>Plea, of USURY — Option to Pay Before Maturity — Estoppel.</p> <p>1. A contract whereby a loan is to be paid in a fixed number of monthly installments of $13 interest and $9.75 principal, and the aggregate amount of interest to be thus paid falls within the terms of the usury statute (Rev. Stats., see. 1226), will not be relieved from the operation of such statute by reason of the fact that the contract reserves to the borrower an option to pay the entire debt at any time, and the earliest interest installments, prior to a reduction of the principal, fall within the legal rate of interest which may be charged.</p> <p>2. In such ease the subject of inquiry is whether or not the contract provides, either directly or indirectly, for the payment of a greater rate of interest than authorized by law.</p> <p>3. The defense of usury may be pleaded by anyone claiming under and in privity with the borrower.</p> <p>4. The doctrine of estoppel may not be invoked to defeat the plea of usury when interposed by any person otherwise legally entitled to interpose such plea.</p> <p>5. Anderson v. Oregon Mtg. Go., 8 Idaho, 418, 69 Pae. 130, distinguished and held not decisive of the questions raised in this case.</p> <p>(Syllabus by the court.)</p>