Sanner v. Smith

Citations

• 89 Ill. 123

Syllabus

<p>1. Usury—note providing rate in excess after maturity. A provision in a promissory note, for the payment of a rate per cent in excess of legal interest., after maturity, as liquidated damages for non-payment, if inserted with the single purpose to secure prompt payment, does not render the transaction usurious.</p> <p>2. Where a promissory note was given, payable six months after date, with interest payable annually, at the rate of fifteen per cent, from “ due until paid,” the first six months’ interest having been paid in advance, and after its maturity numerous installments of interest, at the rate of fifteen per cent, were paid, and indorsed, usually each six months, at that rate, in advance, running through several years, the transaction was held usurious.</p> <p>3. Sam—relief in equity. Where various payments of usurious interest are made on a note, in equity a surety will only be required to pay the principal with six per cent per annum interest, and all payments in excess thereof will be applied -on the principal, and when the sum due is tendered before suit, costs are properly decreed against the payee.</p>