Lake Hiwassee Development Co. v. Pioneer Bank

OPINION

FONES, Chief Justice.

The single issue presented in this case is whether the purchase of notes at a discount beyond the legal rate of interest, and guaranteed at face value by the indorser, constitutes a “loan” rather than a “sale” so as to bring the transaction within the operation of our usury statutes.

Petitioner, Lake Hiwassee Development Company, Inc. a Tennessee Corporation, was engaged in the sale of lots in a development adjacent to Lake Hiwassee, North Carolina. Petitioner sold lots in the development taking a small downpayment, and the balance of the purchase price was…