Hamill v. Mason

Citations

• 51 Ill. 488

Syllabus

<p>1. Usury—what constitutes, under act of 1857. Under the interest law of 1857, a promissory note bearing twelve per cent, interest per annum, is usurious. That act prohibits the taking of any greater rate than ten per cent per annum, upon any kind of contract or for any species of consideration.</p> <p>2. Former decision. Such a case is not controlled by that of McGill v. Ware, 4 Scam. 21, in which it was held, that the taking of a legal rate of interest in advance, -by deducting it from the sum loaned, was not usurious. But that case was decided upon the authority of cases in other courts upon statutes that declared a forfeiture of the whole debt, for usury, and in this State, at that time, there was a forfeiture of three-fold the usury reserved; and it is doubted whether such a rule would have obtained had the forfeiture been no more than the interest.</p> <p>8. Usury—how mailed of. The statute against usury may be availed of under the general issue, where the fact of usury appears from the contract .and the declaration.</p> <p>4. Assignee befos'ematurity—when subject to the defense of usury. Where an assignee before maturity receives a promissory note which discloses upon its face the fact that usurious interest is reserved, he is bound to take notice thereof, and will hold the note subject to that defense.</p>