United Bilt Homes, Inc. v. Elder

Robert H. Dudley, Justice.

This is a usury case. Appellant, United Bilt Homes, contracted to build and to finance appellees’ home for SI7,350 with interest at the rate of 10 percent. The debt was evidenced by an amortized installment promissory note and was secured by a mortgage on the property. After the house was built, the appellees became delinquent in their payments and appellant filed this foreclosure action. The Chancellor found the transaction to be usurious, cancelled the debt and discharged the mortgage lien.

The §17,350 contract price included an §860 charge for insulation and a §960…