State Bank v. Northwestern Security Co.

This is an action to recover on a guaranty by the defendant of the payment of notes payable to it and transferred to the plaintiff *509with a guaranty of payment. The court directed a verdict for the plaintiff. The defendant appeals from the order denying its alternative motion for judgment or a new trial. .

The defense is usury, not in the notes as between the maker and payee, but in the subsequent transaction between the payee and the plaintiff bank which took them at a discount with the guaranty of the payee.

To constitute usury there must be a loan with an agreement to repay with greater than…