Watson v. Mims

Citations

• 56 Tex. 451
• 1882 Tex. LEXIS 54

Syllabus

<p>1. Usurious contract—Interest on interest.— When, the rate of interest was not limited by law, a note was given for $800, with interest at the rate of twenty per cent, per annum. A partial payment was afterwards made and a new note given for the principal and unpaid interest, amounting to $960, with interest thereon at the same rate, the law having in the meantime make a greater rate than twelve per cent, usurious. Held,</p> <p>(1) That the second note was not a mere renewal of the previous one, but was a new and illegal contract by reason of the excessive rate of interest charged on the previously accrued interest.</p>