City Loan Co. v. Cheney

Action to recover possession of personal property under a chattel mortgage executed by the defendants. The defense interposed was that the debt secured by the mortgage was usurious. It appears that, when the defendant William Cheney applied to the plaintiff for a loan of $500, he was required, as a *84condition of obtaining the loan, to buy 13 shares of plaintiff’s “common stock,” at $2 per share, and that thereupon it loaned him $500, and no more, and took his note for $526, drawing interest at 10 per cent, per annum. The only important question in the case is whether this professed sale of…