National Bank of Newport v. Rand

(after stating the facts as above). The declaration avers that on or about November 1,1919, the bank loaned Rand $10,400, “with interest at 6 per cent, per annum.” On November 1, 1920, plaintiff paid all interest due and “renewed said note”; but “upon said renewed note the defendant knowingly reserved and charged a rate of interest exceeding” the lawful rate, viz. 7 per cent.

The plea avers that, before the said $10,-400 was loaned to Rand, he well knew that the bank “did not have the necessary funds to make the said loan, and would necessarily have to borrow the same upon such security as it…