Wilday v. Morrison

Citations

• 66 Ill. 532

Syllabus

<p>1. Usury—plea of. To an action upon a promissory note for $5054, - the defendants pleaded that, on the day of the date of the same, .they were indebted to the plaintiff in the sum of $4356.89, and that plaintiff then contracted with defendants to forbear collecting the same for one year, in consideration that they would give to him their note for such sum and interest thereon for one year, at the rate of sixteen per cent per annum added thereto as principal, with ten per cent interest thereon after maturity, to wliich defendants agreed, and gave the note sued on, and that there was no other consideration for the same, and that defendants had, from time to time, paid on such note $4468, that being more than the original indebtedness, and that therefore the plaintiff ought not to recover anything, because the contract was usurious: Held, that the plea was good, and presented a complete bar.</p> <p>2. Same—when added in principal, a forfeiture of subsequent intm'est follows. When usury is added to the principal debt for one year, and the contract provides for only the legal rate after maturity, it is but one contract for the reservation of usurious interest, and is vicious in all its parts, no matter in what mode the interest may be expressed to be paid, and the creditor can collect only the principal debt, under the act of January 31, 1857.</p> <p>3. Same—a penalty if not paid when due, is not. Where a promissory, note provides that, if the principal is not paid when due, a-greater rate of interest shall be paid than is allowed by law, and it is made payable on so long a time as not to induce the belief that the interest clause was intended as an evasion of the statute, it will not be held to be usurious from such fact alone.</p>