Bank of Newport v. Cook
Supreme Court of Arkansas
Appeal from Woodruff Circuit Court in Chancery. Grant, Green, Jr., Judge. 1. A charge for exchange, unless used as a cover for usury, is legal, and not usury. Tyler, Usury, p. 143 "y Boone, Banking, sec. 29. Appellees paid less than they would have paid had they have executed short paper,, renewing every ninety days. 2 Gratt 372; 1 Stew.
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Appeal from Woodruff Circuit Court in Chancery. Grant, Green, Jr., Judge. 1. A charge for exchange, unless used as a cover for usury, is legal, and not usury. Tyler, Usury, p. 143 "y Boone, Banking, sec. 29. Appellees paid less than they would have paid had they have executed short paper,, renewing every ninety days. 2 Gratt 372; 1 Stew. (Ala.) 442 ; 6 Mass. 52 ; 3 Pet. 36. 2. The assertion in 51 Ark. 535 that reserving interest in advance on long time paper is usury is mere dictum. The paper in that case and in 51 Ark. 548 were three-months paper. The language of constitutions is construed,…
1Opinion of the CourtHughes, J.
The question in this case is, does the taking in advance of the highest rate of interest allowed by the constitution upon a negotiable promissory note payable twelve months after its date constitute usury ?
The provision of the constitution upon the subject of usury is (article 19, sec. 13): “All contracts for a greater rate of interest than ten per centum per annum shall be void as to principal and interest, and the general assembly shall prohibit the same by law, but when no rate of interest is agreed upon, the rate shall be six per centum per annum.”
The act of the legislature approved…
2Cases cited8 opinions
- Utica Insurance v. BloodgoodNew York Supreme Court · 1830
- New York Firemen Insurance v. ElyNew York Supreme Court · 1824
- Brown v. Scottish-American Mortgage Co.Illinois Supreme Court · 1884
- Vahlberg v. KeatonSupreme Court of Arkansas · 1889
- Hoyt v. Pawtucket Institution for SavingsIllinois Supreme Court · 1884
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3Cited by25 opinions
- First National Bank in Mena, Cross-Appellee v. Jack A. Nowlin, Cross-AppellantCourt of Appeals for the First Circuit · 1975
- Winston v. Personal Finance Co. of Pine Bluff, Inc.Supreme Court of Arkansas · 1952
- State v. SheetsNew Mexico Court of Appeals · 1980
- First National Bank v. WaddellSupreme Court of Arkansas · 1905
- Arkansas Savings & Loan Ass'n v. Mack Trucks of Arkansas, Inc.Supreme Court of Arkansas · 1978
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