Gould v. Bishop Hill Colony

Citations

• 35 Ill. 324

Syllabus

<p>1. Usury — what constitutes. An agreement in a promissory note, payable in six months after its date, to pay twenty-five per cent, interest after maturity and until the note is paid, is not usurious.</p> <p>2. Such an agreement will be regarded as in the nature of a penalty, as by payment of the principal at maturity, all liability for the payment of an usurious rate of interest is defeated.</p> <p>3. If, however, a note were given, due at date or on short time, so as to induce the belief that it was only designed to evade the statute, the rule would be different.</p> <p>4. Chancery—relief against penalties — high rates of interest payable after maturity. Being a penalty, if oppressive, no doubt a court of equity would afford relief as in other cases of that character.</p>