First of America Bank v. Backofen

In this appeal from probate court, personal representative Lois Backofen challenges an order allowing the claim of First of America Bank in the amount of $21,200.24. At the center of this dispute is the "business entity exemption,” MCL 438.61; MSA 19.15(71), to Michi*797gan’s general usury statute, MCL 438.31; MSA 19.15(1). We reverse and remand.

Although the parties identify a number of issues, we find one to be both central and dispositive, i.e., whether the trial court erred in excluding evidence offered by the fiduciary regarding the bank’s knowledge of the borrower-decedent’s personal…