Agostini v. Colonial Trust Co.

Pearson, Vice-Chancellor:

The gravamen of the complaint is that the provisions for interest in a loan agreement, bond and mortgage (complainants being the borrowers and defendant the lender) violate restrictions upon interest chargeable under the Delaware usury statute, Rev.Code of Del. 1935, § 3101, and are not authorized by the relevant section of the small loan act, Rev.Code, § 4047. Complainants charge that illegality stems from a provision for the deduction in advance of what amounts to “bank discount” at six per cent per annum for a period of three years computed upon the entire face…