Cameron v. Merchants' & Manufacturers' Bank
Michigan Supreme Court
Error to Superior Court of Detroit. Assumpsit by the bank against plaintiffs in error as owners and endorsers of two notes pledged without their knowledge by the holder as collateral security for the payment of another note which the bank had discounted for him at the rate of ten per cent, and to which plaintiffs in error were not parties.
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Error to Superior Court of Detroit. Assumpsit by the bank against plaintiffs in error as owners and endorsers of two notes pledged without their knowledge by the holder as collateral security for the payment of another note which the bank had discounted for him at the rate of ten per cent, and to which plaintiffs in error were not parties. It was admitted that the bank was a corporation organized under the general banking laws of Michigan, and that it was entitled to recover unless barred by Comp. L., § 2185, which makes it unlawful to take or receive more than the legal rate of interest in…
1Opinion of the CourtCampbell, J.
The only question in this case is, whether under the general banking law, a bank may take ten per cent., instead of seven, for discounts on loans. The statute, in giving discounting and other banking powers, contains a proviso “that it shall not be lawful for any such association to take or receive more than the legal rate of interest in advance on its loans and discounts.” 1 Comp. L., § 2185. It is claimed by plaintiff in error that the phrase “legal *243rate of interest” means seven per cent., which is the rate fixed where the contract is silent on the rate, and that it •cannot authorize the…
2Cases cited1 opinion
- Smith v. StoddardMichigan Supreme Court · 1862
3Cited by3 opinions
- Tousey v. MooreMichigan Supreme Court · 1890
- Cooper v. United Security Life Insurance & Trust Co.Court of Appeals for the D.C. Circuit · 1909
- City of Detroit v. Detroit City Ry. Co.U.S. Circuit Court for the District of Eastern Michigan · 1893