Cagle v. Boyle Mortgage Co.

Frank Holt, Justice,

in this foreclosure action brought by the appellee, the appellants interposed the defense of usury. The chancellor found the transaction between the parties was free of usury and, therefore, appellee was entitled to foreclosure. We must agree with appellants’ contention that the court erred in so finding.

In December, 1973, the appellants signed a construction note and mortgage in the amount of $28,000, bearing 10% interest per annum, in favor of appellee for the purpose of financing the construction of a residence. Advances or “draws” totaling $22,180 were made from…