Smith v. Director, Corp. & Securities Bureau

In January, 1976, plaintiff Smith attempted to file proposed articles of incorporation on behalf of Freedom Mortgage Company. These proposed articles were rejected by the defendant. Plaintiff subsequently sought review of this action in the Oakland County Circuit Court. On November 12, 1976, the circuit court granted summary judgment against plaintiff who appeals that action as of right.

The rejected articles contain the following stated purpose:

"The purpose for which the corporation is organized is to provide loans to noncorporate borrowers at rates of interest in excess of 7% per annum, but…