Georgia State Building & Loan Ass'n v. Grant

Citations

• 82 Miss. 424

Syllabus

<p>1. Usury. Contract to waive. Public policy.</p> <p>A contract by a borrower to waive, directly or indirectly, the usury laws is against public policy and void.</p> <p>2. Building and Loan Association. Contract stipulation. Final settlement. Bate of interest.</p> <p>Where a borrowing member of a buílidng and loan association pledged his stock in the association and mortgaged other’ property as security for the loan, and the contract stipulated that “On the maturity of the stock so advanced upon, total payments of installments, interest and premiums shall not exceed the amount of the advance, with interest thereon at the highest contractural rate per annum allowed hy the statutes of the state,” the borrower is entitled to the benefit of the stipulation only on maturity of the stock.</p> <p>3. Same.</p> <p>A provision in the by-law of a building association that, “where its loan contracts are governed by laws that limit the aggregate amount of premium and interest that can be' taken on them, only so much cif the premium collected shall be taken as profits by it as will, with the interest collected, equal and conform to the highest contractural rate of interest in such state, the balance-of the premium being used at settlement” in reduction of the debt, gives the borrower the benefit thereof only on final settlement, after maturity of th'e stock.</p> <p>4. Same. Stockholders’ payments. Withdrawal fees.</p> <p>A complainant who seeks by suit to have the contract by which h’e, as a stockholder, borrowed money of a building and loan association declared usurious, is not entitled to' have credited on the principal of his loan the sums paid by him in his character of stockholder on expense account or for fines and withdrawal fees.</p>