Vela v. Shacklett

The note sued on' by defendants in error was payable five years after date, with interest thereon at the rate of 10 per cent, per annum, interest payable semiannually. It contained a- stipulation giving the maker the privilege of paying same at the end of three years upon payment of a sum equal to three months’ advance interest on the principal thereof.

Defendants in error admitted the execution and delivery of the note and deed of trust, presenting the sole defense of usury. It is contended that, because the Constitution of this state (article 16, § 11) provides, “contracts for a greater rate…