Natchez Building & Loan Ass'n v. Shields

Citations

• 71 Miss. 630

Syllabus

<p>1. Building and Loan Associations. Interest on premium. Usury. Settlement.</p> <p>Although a borrowing member of a building and loan association obligates himself to pay the full amount bid off by him, including the premium on the loan, yet, if his contract only requires the payment of a lawful interest on the amount of his bid, and afterwards, in settlement with the association, he pays less than ten per cent, per annum on the actual amount received, he cannot complain of usury, or that interest was charged on the premium.</p> <p>2. Same. Interest on premium. Voluntary settlement.</p> <p>In such case, where the borrowing member, on withdrawing from the association, with full knowledge of all the facts, makes a voluntary settlement, in which he is allowed as unearned a part of the premium bid by him, together with his share of the profits, including in such profits interest afterwards alleged by him to be usurious, he cannot recover, as usurious or illegal, interest charged him on the premium.</p>