Bowman v. Neely

The only question arising upon this record is, whether a stipulation in a promissory note providing that interest at a legal rate upon the principal sum shall fall due and be paid annually, and if not so paid shall become principal and bear interest at the same rate is a usurious contract. In the view of the counsel for the appellant such a contract is usurious and so taints the whole transaction with usury that neither simple nor compound interest can be recovered upon a note containing such an agreement.

The compound interest thus provided for can not be collected by law in this State. The…