First National Mortgage Co. v. Arkmo Lumber & Supply Co.

George Rose Smith, Justice.

When the appellee Arkmo filed this suit in 1980 to foreclose its second mortgage upon land in Pulaski county, the appellant First National filed a cross-complaint to foreclose its construction-money first mortgage upon the same land. The mortgagors, apparently insolvent, let both claims go by default. Arkmo pleaded in response to the cross-complaint that First National’s mortgage was void for usury. This appeal is from a decree sustaining that plea.

For reversal First National contends: First, Arkmo lacks standing to challenge the first mortgage for usury; second,…