Pass v. N. E. Mortgage Security Co.

Citations

• 66 Miss. 365

Syllabus

<p>1.Usury. Cost of negotiating loan. Pay of intermediary.</p> <p>A loan at the highest legal rate of interest is not rendered usurious by the fact that the borrower pays another than the lender a certain sum. for negotiating the loan.</p> <p>2. Same. Interest. Cost of negotiating loan, not interest.</p> <p>Interest is the price paid for the use of money. If a sum be paid by the borrower to another for the means of obtaining a loan, this is not interest, and it is not to be estimated in determining whether the rate be usurious.</p> <p>3. Cost to Borrower. Lender’s knowledge thereof. Loan not affected thereby.</p> <p>The fact that the lender has knowledge that the borrower is paying a certain sum, even though it be exorbitant, to a third person for procuring the loan, does not render the transaction usurious, if the lender receives no more than the legal rate of interest for the use of his money.</p> <p>4. Usuky. Expense of obtaining loan. Case m judgment.</p> <p>P agreed to pay A six hundred dollars to procure for him a loan of three thousand dollars, for five years, at eight per cent, per annum, upon the security of his farm, and an additional twenty-five dollars for the necessary abstract of title. A forwarded the application and abstract to 0, the agent of the Corbin Banking Co., who forwarded them to said company. The latter referred them to the N. E. M. S. Co., which consented to lend three thousand dollars upon the security. Thereupon the C. B. Co. procured the execution of the note and trust-deed by P, payable to N. E. M. S. Co., and advanced the three thousand dollars, which was paid, less the commission, six hundred dollars, to P. The six hundred dollars was shared between the C. B. Co., O, and A. The ÍT. E. M. S. Co. received none of the commission, but upon receipt of the note and trust-deed, paid the three thousand dollars to the C. B. Co. Held, in a suit between the NE. M. S. Co. and P, that there was no usury in the transaction.</p> <p>5. Principal and