Ceraolo v. Smith

In proceedings to enforce a mortgage lien upon real estate given to secure the payment of a negotiable promissory note for $5000.00 payable in three years with interest at 8% per annum, the Chancellor found in effect that under Sections 6936 (4851), 6939 (4852), Compiled General Laws, 1927, the note secured by the mortgage is usurious in that the actual amount loaned was $4500.00, $500 having been reserved as a bonus'. Amounts totaling $1000.00 were reserved or paid as interest. The decree com tains the following:

“Amounts actually loaned by Smith to Ceraolo $4500.00

Attorney’s…