Midland Savings & Loan Co. v. Solomon

Citations

• 71 Kan. 185
• 79 P. 1077
• 1905 Kan. LEXIS 116

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Bond and Mortgage — “Proper Law of the Contract” May be Stipulated. The parties to a lawful bond for the payment of money may stipulate that it shall be payable in, and be governed by the laws of, a state of their choice; and if such a stipulation be made fairly, and in good faith, it is a duty of the courts of another state in which suit may be brought to recover on the bond to give effect to it.</p> <p>2. -Location of the Mortgaged Property Immaterial. The fact that, as an incident to such bond, the obligor has secured it by a mortgage upon real estate located in the foreign state, where suit is brought to enforce it, does not abrogate the stipulation, and the bond must nevertheless be interpreted by the law of the state where it is payable.</p> <p>3. -Duty of Courts of This State, Regardless of the Usury Law. The courts of this state should not refuse, on the ground of a supposed public policy, to enforce collection of sums due on a lawful bond solvable by the laws of a foreign state, and not given in evasion of the usury laws of this state, merely because, if construed by the laws of this state, the rate of interest would be higher than that allowed by the laws here.</p>