Bell v. Itek Leasing Corp.

Supplemental opinion on denial of rehearing delivered September 19, 1977

(In Banc)

George Rose Smith, Justice.

The appellee, in its petition for rehearing and supporting brief, continues to argue in effect that the so-called lease should be construed according to its form rather than its substance. It is settled, however, that if a transaction, such as a purported sale, is actually a mere device to cover the exaction of usurious interest, the form of the transaction is immaterial. Home Bldg. & Sav. Assn. v. Shotwell, 183 Ark. 750, 38 S.W. 2d 552 (1931). In the case at bar the transaction between…