Brockway v. Haller
Supreme Court of Iowa
Appeal from Montgomery Circuit Court. Action to recover for interest alleged to be due upon delinquent interest upon a promissory note.
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Appeal from Montgomery Circuit Court. Action to recover for interest alleged to be due upon delinquent interest upon a promissory note. The petition shows that the note was drawn bearing ten per cent interest per annum; that after the note became due the parties entered into an agreement for an extension; that in consideration of the extension the defendant agreed to pay ten per cent interest and pay it annually; and in case of failure to pay the interest when due to pay ten per cent interest on the delinquent interest. The plaintiff claims to recover, however, only six per cent interest on…
1Opinion of the Court
Adams, Ch. J.
i. istekest : pleading. Interest in this State is limited to six per cent per annum. To this rule there is one exception. Parties may agree in writing for the payment of interest not exceeding ten per cent per annum. Code, section 2077. The agreement in this case to pay ten per cent interest on the delinquent interest not being in writing, such interest cannot of course be recovered. The plaintiff therefore only seeks to recover six per cent. The defendant contends that he cannot recover even that. His theory is that a contract to pay ten per cent is not a contract to pay six per…
2Cited by5 opinions
- Sprague, Warner & Co. v. BensonSupreme Court of Iowa · 1897
- Brown v. Cass County BankSupreme Court of Iowa · 1892
- First National Bank v. FennSupreme Court of Iowa · 1888
- Grey v. CallanSupreme Court of Iowa · 1907
- First National Bank v. MessnerNorth Dakota Supreme Court · 1916