Smith v. Mack
Supreme Court of Arkansas
Appeal from Greene Chancery Court; Charles D. Frierson, Chancellor; STATEMENT BY THE COURT. C. A. Mack brought this suit against appellants to recover $10,642.50 on two promissory notes and interest, and to foreclose a mortgage upon lands in Greene and Poinsett counties, given to secure the payment thereof.
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Appeal from Greene Chancery Court; Charles D. Frierson, Chancellor; STATEMENT BY THE COURT. C. A. Mack brought this suit against appellants to recover $10,642.50 on two promissory notes and interest, and to foreclose a mortgage upon lands in Greene and Poinsett counties, given to secure the payment thereof. The answer admits the execution of the notes and mortgage, and pleads usury in bar of the recovery, alleging that appellee agreed to make said loan, charging interest at the rate of 10 per cent, per annum from date until paid and an additional sum of $1,000 as bonus for the forbearance and…
1Opinion of the Court
Kirby, J.,
(after stating the facts). The sole question in this case is one of fact. The law is well settled that, “to sustain the plea of usury, it must appear that excessive interest was paid to the lender, or that a bonus or commission was paid to the agent of the lender with his knowledge, or under circumstances from which his knowledge will be presumed, which commission, when added to the interest paid or to be paid to the lender, would exceed the lawful rate.” The burden of proof is upon the party who pleads usury to show clearly that the transaction was usurious. Banks v. Flint, 54 Ark.…
2Cases cited3 opinions
- Leonhard v. FloodSupreme Court of Arkansas · 1900
- Banks v. FlintSupreme Court of Arkansas · 1890
- White v. StateSupreme Court of Arkansas · 1907
3Cited by14 opinions
- McCoy Farms, Inc. v. J & M McKEESupreme Court of Arkansas · 1978
- Jones v. PhillippeSupreme Court of Arkansas · 1918
- Briant v. Carl-Lee Bros.Supreme Court of Arkansas · 1923
- Baxter v. JacksonSupreme Court of Arkansas · 1937
- Arkansas Real Estate Co. v. BuhlerSupreme Court of Arkansas · 1969
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