Hendrickson v. Godsey
Supreme Court of Arkansas
APPEAL from White Chancery Court. David W. Carroll, Chancellor. Suit by Mary and Julia Godsey against Hendrickson to foreclose a mortgage on land. The defense of usury was interposed. The court decreed that the lien be foreclosed. Hendrickson has appealed. The facts necessary to its understanding are stated in the opinion. The transaction was usurious and void. The reservation need not be in the form of interest. It may be included as principal, or paid as a bonus.
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APPEAL from White Chancery Court. David W. Carroll, Chancellor. Suit by Mary and Julia Godsey against Hendrickson to foreclose a mortgage on land. The defense of usury was interposed. The court decreed that the lien be foreclosed. Hendrickson has appealed. The facts necessary to its understanding are stated in the opinion. The transaction was usurious and void. The reservation need not be in the form of interest. It may be included as principal, or paid as a bonus. See Tyler, Usury, pp. 102, 368 ; 2 Barb., 56 ; 29 How. Pr., 280; 32 N. Y, 119 ; 2 Halst. (N. J.) Chy., 73 ; 4 Bibb, 327; 51 Ark.,…
1Opinion of the Court
Hemingway,
J. A loan of money at the highest lawful rate of interest, made under the inducement of a promise by the borrower that he would make a valuable gift of personal property to the lender, is usurious. The gift is such only in name; in law and in fact it is a part of the price paid for the use of money. The loan by Julia Godsey of money, a part of which belonged to her and the remainder to Mary Godsey, was induced by the promise that Hendrickson would pay the highest rate of interest allowed by law, and in addition thereto permit Julia to take from his store merchandise of a value equal…
2Cited by1 opinion
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