Colonial Acceptance Corp. v. Northeastern Printcrafters, Inc.

WELLS, Judge.

The sole question presented by this appeal is whether these individuals may assert the defense of usury, or whether they are precluded therefrom by the provisions of N.C. Gen. Stat. § 24-9 (Cum. Supp. 1983). 1 This is a question of first impression in this state.

The statute prohibits a corporation, “its successors or anyone else in its behalf’ from claiming the defense of usury. We therefore look first to determine defendants’ relation to the corporate debtor. The agreement is labeled “Guaranty,” but its substance, not the label, controls. Trust Co. v. Creasy, 301 N.C. 44, 269…