Case ID: ohio-law-abs_5/html/0380-01.html
Source: Caselaw Access Project
Author: {"author": "MARSHALL, C. J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 442
    No. 20323
    Elbert B. Alston, Assignee, v. American Mortgage Co.
    Error to the Court of Appeals of Butler county.
    331. CORPORATIONS — Usury—1* Loan by corporation with execution of note secured by mortgage upon its property, said note providing to pay interest at rate not exceeding that authorized by 8303 GC; but includes in principal a sum to be paid in excess of the actual loan, such corporate borrower cannot make defense of usury under 8705 GC. as amended.
    2. Assignee of such corporation for benefit of creditors, likewise precluded from making such defense.
   MARSHALL, C. J.

1. Where an Ohio corporation borrows money in an amount not in excess of the amount it is authorized to borrow by. Section 8705, General Code, and executes a note or bond therefor and secures its payment by a mortgage upon its property and such note or bond matures one year or more after the date thereof, and in such note or bond agrees to pay interest at a rate not in excess of that authorized by Section 8303, General Code, but includes in the principal sum agreed to be paid a sum in excess of the amount actually loaned, which excess, if repaid would constitute a greater charge for the use of the money than is authorized by Section 8303, General Code, such corporate borrower is precluded from making a defense of usury by virtue of the provisions of Section 8705, General Code, as amended August 14, 1921.

2. Such defense not being available to such corporate borrower, an assignee of such corporation for the benefit of creditors is likewise preeluded from making such defense.

Judgment affirmed.

Day, Allen, Kinkade, Jones and Matthias, JJ., concur.