McGill v. Ware

Citations

• 5 Scam. 21

Syllabus

<p>Error io Greene.</p> <p>1. Usury — question for jury. The rule, laid down in the English and American decisions, is, that to constitute usury, there must be a corrupt agreement, by some devise or shift, to take or reserve a greater rate of interest than is allowed by law. But if the contract be fair and bona fide upon its face, proof aliunde is admissible to show the usurious consideration; and, semble, it is a question of fact, which courts would now leave to a jury, (a) </p> <p>2. Same — interest at twelve per cent. By the statute of Illinois a party may, by express agreement, take interest at the rale of twelve per centum per annum; (b) and the reservation of such interest, and the taking of the same in advance, out of the sum loaned, is not usurious.</p> <p>3. Same — contract not void. The statute of Anne made contracts reserving usurious interest void, whilé that of Illinois does not; and the rights of parties under the two statutes are very different.</p> <p>4. Same — inadequacy 0 f price. Semble, That inadequacy in price, on the sale of annuity deeds, where the sale is bona fide, and not a colorable loan, cannot make the contract usurious; nor will a clause of redemption make it so; nor will the reservation of usurious interest, if there be a real hazard as to the repayment of the principal.</p>