Loganville Banking Co. v. Forrester
Supreme Court of Georgia
The Court of Appeals (in Case No. 5662) requested an instruction from the Supreme Court in answer to the following questions: (1) Does the taking or reserving of interest in advance by a bank at the highest legal rate on a short-term loan render the contract usurious within the purview of section 3427 of the Civil Code, so as to make null and void a deed to realty, given to secure the payment of a promissory note representing the amount of such a loan? (2) What would be the…
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The Court of Appeals (in Case No. 5662) requested an instruction from the Supreme Court in answer to the following questions: (1) Does the taking or reserving of interest in advance by a bank at the highest legal rate on a short-term loan render the contract usurious within the purview of section 3427 of the Civil Code, so as to make null and void a deed to realty, given to secure the payment of a promissory note representing the amount of such a loan? (2) What would be the maximum length of time in which a loan could run and still be a “short-term loan,” on which interest at the highest…
1Opinion of the CourtEvans, P. J.
The legal rate of interest in this State is seven per centum per annum, but the parties may stipulate in writing for a higher rate, not to exceed eight per centum per annum. Our statute defines usury as “the reserving and taking, or contracting to reserve and take, either directly or -by indirection, a greater sum for the use of money than the lawful interest.” Civil Code (1910), § 3427. The code (§ 3436) further declares: “It shall not be lawful for any person, company, or corporation to reserve, charge, or take for any loan or advance of money, or forbearance to enforce the collection of…
2Cases cited10 opinions
- Patton v. Bank of LaFayetteSupreme Court of Georgia · 1906
- Union Savings Bank & Trust Co. v. DottenheimSupreme Court of Georgia · 1899
- McCall v. HerringSupreme Court of Georgia · 1902
- Bellerby v. GoodwynSupreme Court of Georgia · 1900
- Mackenzie v. Flannery & Co.Supreme Court of Georgia · 1892
5 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- First National Bank in Mena, Cross-Appellee v. Jack A. Nowlin, Cross-AppellantCourt of Appeals for the First Circuit · 1975
- Holt v. RickettCourt of Appeals of Georgia · 1977
- McDonald v. G. A. C. Finance Corp.Court of Appeals of Georgia · 1967
- Haley v. CovingtonCourt of Appeals of Georgia · 1917
- Williams v. First Bank & Trust Co.Court of Appeals of Georgia · 1980
15 more not listed; retrieve them via the Exa API.