Royal Loan Ass'n v. Forter

Citations

• 68 Kan. 468
• 75 P. 484
• 1904 Kan. LEXIS 129

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Building and Loan Association — Transaction Held Simply a Loan. The facts in this case, such as the absence of competitive bidding for the loan, a level rate of interest, and premiums payable in gross instalments, and circumstances indicating that the borrower did not become a member of the building and loan association, sufficiently show that the transaction was not a building and loan association contract on which more than the ■ legal rate of interest can be collected, but was simply a loan which is subject to the usury laws.</p> <p>2. --• Kansas Contract — KansasUsury Laws Govern. Although the loan was made by an association organized in Mis- ' souri, the negotiations were had with an agent in Kansas; the bond and mortgage were executed in Kansas by residents of the state; the mortgage was on land in Kansas; the money borrowed was paid back to.the agent in Kansas; and the recitals in the mortgage, as well as the actions of the parties, indicated that the parties treated the transaction as a Kansas contract, to be interpreted in accordance with the laws of Kansas. Therefore, it was governed by the usury laws of Kansas.</p>