Riddle v. Rosenfeld

Citations

• 103 Ill. 600
• 1882 Ill. LEXIS 216

Syllabus

<p>1. Usury—whether recoverable back when whole debt is voluntarily paid. Usurious interest once voluntarily paid on a note or contract which has been fully paid and surrendered, can not be recovered back either in a court of law or equity.</p> <p>2. Same—in, respect to distinct and separate transactions. Where five notes were given, each for a distinct and separate loan, procured at different times, and a note secured by deed of trust was deposited with the holder as collateral security for their payment, and all such original notes were paid and taken up except one, which was assigned, together with the collateral, it was held, on bill to foreclose the mortgage by the assignee against a subsequent purchaser of the mortgaged premises and others, that usurious interest voluntarily paid on the four original notes so taken up could not be allowed as a credit upon the remaining unpaid note, as the giving of the collateral did not convert these several notes into one transaction, but each remained a separate cause of action, the same as before.</p> <p>3. Mortgage—subsequent purchaser—application of payments—duty of holder of mortgage. The holder of a note secured by deed of trust as collateral security, without actual notice of a subsequent purchase from the mortgagor, is not bound to act with reference to such purchaser’s rights in applying payments as a credit.</p>