Bank of College View v. Nelson

Plaintiff is a state bank. It brought this action on two promissory notes, one for $1,390 and the other for $400. Defendants had. executed and delivered the notes, which were due and unpaid, and made no defense to them, ■ but pleaded a counterclaim for damages amounting to $17,500 for the breach of a contract obligating plaintiff to lend them approximately $6,500 for the specific purpose of constructing a garage on lots owned by them in College View. The answer to the counterclaim alleged that-the - contract for the loans was unlawful and void because performance required the violation of a…