Martin v. Ajax Construction Co.

The question posed for decision is whether it is usurious where an agreement to loan $5,000 to a construction company and to receive $10,000 in return in any event “on or before one year from the date hereof” where the money is to be used in building houses on tracts specified by the company or on “such other tracts as might be selected by” the company, the money to be secured by irrevocable assignments of specified sums to be payable to the lender, where, contemporaneously with the agreement, the company executes and delivers its promissory note in the sum of $10,000, causes its principal…