Guaranty Bond & Mortgage Co. v. Fair Promise A. M. E. Zion Church

The question for decision is whether the release of 13 December, 1928, estops the defendants from setting up usury in the original transaction. The answer is “No.”

True, the decisions are to the effect that an abandonment of the usurious agreement and the execution of a new obligation for the amount of the original debt, eliminating the usury and providing for the payment thereafter of legal interest, purges the original usury, and renders the second obligation valid and enforceable. Hill v. Lindsay, 210 N. C., 694, 188 S. E., 406; Beck v. Bank, 161 N. C., 201, 76 S. E., 722; Ector v. Osborne,…