Ewing v. Mechanics Loan & Savings Co.

The Code, § 16-101, does not authorize the charge of more than 8 per cent, straight interest on a note given for the purchase-price of a certificate of indebtedness. The note in this case provides for the payment of $78 interest in any event, and 8 per cent, interest in the event of default in the payment of any installment. The loan company was authorized to issue 4 per cent, certificates of indebtedness. The presumption is, until shown to have been otherwise authorized by law, that the certificates should bear interest at 4 per cent, per annum from the date of their issuance. A note, well…