Goodale v. Wallace

Citations

• 19 S.D. 405
• 103 N.W. 651
• 1905 S.D. LEXIS 57

Syllabus

<p>1. Where a loan of $1,800 for five years at 12 per cent, was made; the borrowers executing as evidence thereof 59 notes for $40 each, and 1 for $43.20; a note being payable each month until the debt was paid; no interest being payable on any note until due — the contract was not usurious, within the statutes forfeiting the right to interest when interest in excess of 12 per cent, is reserved.</p> <p>2. Where interest at an illegal rate is reserved by the lender through mistake, rather than a corrupt agreement, the illegal reservation is not within the statute forfeiting the lender’s right to interest when interest in excess of the legal rate is reserved.</p> <p>3. The validity of notes representing a debt and interest thereon at the highest legal rate to their maturity is not affected by a provision in the notes for interest after maturity. - .</p> <p>4. Where a mortgage given to secure a senes of notes representing a debt and interest thereon to their maturity at the highest legal rate provided that, on the failure of the mortgagors to pay any note at maturity, all of the notes should thereupon become due and collectible, the contract was not thereby rendered usurious.</p> <p>5. A provision in a contract for the payment of the highest legal rate of interest monthly as it becomes due is not an evasion of the usury law.</p>