Sherman and Sherman v. Myers

Myers', as complainant below, filed suit to foreclose a mortgage for $40,000.00. Sherman, the mort gagor and principal defendant, pleaded usury. The Court found that while the mortgage had been executed for $40,000.00, ’the principal sum was in fact only $32,000.00, which had been lent'to the borrower on his agreement to secure it by a mortgage for the fictitious principal of $40,000.00 payable within three years, with eight per cent.' interest in the interim. The Chancellor also -found that-between the time the loan was made and the institution of the suit, the sum of $4,200.00 had been paid…