North v. Sergeant
New York Supreme Court
THIS action was brought by the plaintiff as indorsee, against the defendants as makers and indorser, of a promissory note made by the defendants Sergeant and Akin, under the firm name of E. Sergeant & Go., on the 27th of March, 1857, by which they promised to pay to the order of F. E. Houghton, six months after date, $1584.16. The note was indorsed by Houghton, to the plaintiff.
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THIS action was brought by the plaintiff as indorsee, against the defendants as makers and indorser, of a promissory note made by the defendants Sergeant and Akin, under the firm name of E. Sergeant & Go., on the 27th of March, 1857, by which they promised to pay to the order of F. E. Houghton, six months after date, $1584.16. The note was indorsed by Houghton, to the plaintiff. The defendant Sergeant, in his answer, alleged that the note was made by Akin, who was then the partner in business of Sergeant, without his privity or knowledge, and delivered to the defendant Houghton, for his…
1Opinion of the Court
By the Court,
Ingraham, J.
The defense set up by the defendants in this case, to the note on which the action was brought, was usury. That usury was alleged to be the payment of more than seven per cent to one Hardenbergh for originally obtaining the loan, and at subsequent times for the renewal of it.
Whether such payment were usurious or not depended on the character in which Hardenbergh was acting. If the original loan was for himself, then the taking of more than seven per cent- interest would affect the security with usury and make it void in the hands of any subsequent successive holders.…
2Cited by3 opinions
- Gilbert v. . FinchNew York Court of Appeals · 1903
- McFarland v. CarrWisconsin Supreme Court · 1862
- Borcherling's v. TrefzNew Jersey Court of Chancery · 1885