First National Bank v. Davis
Illinois Supreme Court
Appeal from the Appellate Court for the Second District ;—heard in that court on appeal from the Circuit Court of Knox county; the Hon. Arthur A. Smith, Judge, presiding. On November 4, 1876, the bank held the note of Davidson and Davis for the sum of $8000, given six months before that day, and payable on that day, with interest after due at the rate of ten per cent per annum.
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Appeal from the Appellate Court for the Second District ;—heard in that court on appeal from the Circuit Court of Knox county; the Hon. Arthur A. Smith, Judge, presiding. On November 4, 1876, the bank held the note of Davidson and Davis for the sum of $8000, given six months before that day, and payable on that day, with interest after due at the rate of ten per cent per annum. The debt was really the debt of Davidson, and as between the makers, Davis was merely bound as security for Davidson’s debt. Davidson was not prepared to pay the note at maturity, and by agreement of parties Davis…
1Opinion of the CourtJustice Dickey
The position, of Davis and wife, that, as in equity they owe Davidson nothing therefore the bank can claim nothing, is not tenable. In chancery the substance, and not the mere form, is regarded. While in form this was a note and mortgage to Davidson, it was, with the indorsed guaranty, made for the purpose of securing to the bank the debt of $3000, to be paid, with interest, at the end of the year. The doctrine they contend for has no application to such a case.
The taking of the note for $8880 is defended by counsel for the bank as free from usury, upon the ground that the Banking law of the…
2Cases cited1 opinion
- Goodrich v. Reynolds, Wilder & Co.Illinois Supreme Court · 1863
3Cited by16 opinions
- Harris v. BresslerIllinois Supreme Court · 1887
- Ferguson v. Tanner Development Co.Court of Appeals of Texas · 1976
- Bressler v. HarrisAppellate Court of Illinois · 1886
- Willett v. MaxwellIllinois Supreme Court · 1897
- McGuire v. CampbellAppellate Court of Illinois · 1895
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