Saylor v. Daniels

Citations

• 37 Ill. 331

Syllabus

<p>1. Usury. While it is the rule of this court that usurious interest once paid voluntarily, cannot be recovered back, yet that rule does not apply where the transaction has not been settled, and the lender brings his action for the recovery of an alleged balance. In such case the borrower may defend by claiming a credit for whatever usurious interest he has paid in the same transaction. The fact that new notes have, from time to time, been given does not change the case.</p> <p>2. Assignee — rights of, innate tainted with usury. If a note tainted with usury is assigned by the payee to a creditor as collateral security for a pre-existing debt, he is a holder for a valuable consideration, but only to the extent of the debt due him. The same defence may be made to the residue of the note as if it had not been assigned.</p>