First National Bank v. Rowley
Supreme Court of Kansas
Error from Cloud Distriet Court. ACTION to recover double the amount of the illegal interest paid upon a loan made by the Bank. The cause was submitted to the court without a jury, and upon the evidence adduced the following findings of fact were made: “1. That the defendant is a corporation organized as a national bank under the laws of the United States.
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Error from Cloud Distriet Court. ACTION to recover double the amount of the illegal interest paid upon a loan made by the Bank. The cause was submitted to the court without a jury, and upon the evidence adduced the following findings of fact were made: “1. That the defendant is a corporation organized as a national bank under the laws of the United States. “2. On the 8th day of February, 1886, the defendant loaned to the plaintiff $300, taking a note for $375, signed by the plaintiff and F. F. Groves, due in one year. “3. On January 31, 1887, said F. F. Groves, for and at the request of the…
1Opinion of the Court
The opinion of the court was delivered by
JohnstoN, J.:
Under the national-banking act, a national bank cannot charge a higher rate of interest than is allowed by the laws of the state where the bank is located; and if a greater rate of interest is knowingly charged and received, it operates as a forfeiture of the entire interest which the note or other evidence of debt carries with it.
“In case a greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back in an action in the nature of an action of debt twice the amount of interest…
2Cited by5 opinions
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- Teague v. First National BankCourt of Appeals of Kansas · 1897
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