Mesaba Loan Co. v. Sher

Peterson, Justice.

In each case the plaintiff sues on a promissory note for a loan made pursuant to the plan of lending commonly known as the Morris Plan, authorized by L. 1933, c. 246 (3 Mason Minn. St. 1936 Supp. §§ 7774-25 to 7774-35) under which plaintiffs are organized as industrial loan and thrift companies. The statute [7774-28 (b)] authorizes such companies to engage principally in the business of making small loans “upon the security of co-makers, personal chattels or other property, exclusive of real estate, for a period not to exceed one year; * * *” A certificate of authorization…