Radford v. Community Mortgage & Investment Corp.

The dispositive question in this case is whether a loan was exempt from the usury laws because it was made for “the conduct of business,” an exception to the usury laws created by Code § 6.1-330.44. The answer requires an examination of the circumstances surrounding the making of the loan.

Ronald D. Radford operated a sole proprietorship in Virginia Beach known as “Radford Wallcovering.” His wife, Ginger T. Radford, had no ownership interest in the business and was paid no compensation from it. Mr. Radford’s profits from the operation of the business constituted his family’s principal source…