Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-02-10

By the act Of 1919, ch. 30, sec. 2, in any case
whore larger sum than six per cent. interes
shall be reserved, directly or indirectly, it
shall be within the option OF the defendant
20 plead the act, and thereby avoid the ex-
cess over the legal rateof interest. BY the
act Of 1885, chap. 10, sec. 4, when 3 greater
sum than six per cent is reserved directly
or indirectly, and suit is brought for the
same. either 10 a court Of record, or before
a magistrate, the principal debtor, bis seeu-
rity or accommodation endorser, the de-
fendant may avoid the excess by plea set
ting forth, under oath, the amount Of usury
In the transaction Inc proIiss::.; C, these these
last two acts were embodied in the Code,
in sec. 1856, 1851, 1852 and 1858. The pas
sage Of the act Of February 81, 1860, al
lows greater interest than six per cent
and not to exceed ten per cent. for money
loaned. The second section of said act
does not repeal the provisions Of the Code,
1850 1858, but imposes penalty for taking
ten per cent. interest, where the considera-
ten Of note was not money loaned. By
the provisions Of the second section of
the act, it was lawful to renew debts
for money actually loaned at ten
per cent. But it was expressly pro.
vided, that nothing in the act should be so
construed as to authorize any debt or liza
bility not originating for money actually
loaned thus to be renewed, and all efforts
by direct or indirect means, 10 take and
receive greater rate Of interest than six
per cent. per annum for any debt, or de-
mand, or liability, the origin Of which is
not for money actually loaned shall be
deemed unlawful, and operate as a release
to the debtor from the entire amount of
such debt. The replication of the defendant
in error admits there was usurious interest
included TO the amount Of S75S. This sum
formed a part of the consideration of the
note of $1,000 was not for loaned money
bat an illegal consideration, and falls within
The provisions of the second section of the
act passed Feb. 21st, 1860 The sections
l950-l953 of the Code have no application
10 the case under consideration. The OBJ
iect and purpose Of the Legislature was to
protect the citizen from the tyranny Of the
creditor by being forced to pay ten per
cent. interest which was not for borrowed |
money. The penalty inflicted was the
loss Of the debt. The language is plain |
and unambiguous, and it is imperative |
upon the courts to enforce the plain man
1ates Of the statutes. 1t was settled by this |
court in the case of Whitman and Ryan |
5s. Brady, Sd Head, 723, that every con-
.ract made for or about any matter or thing |
which il prohibited or made unlawful by |
statute, is a void contract. It follows, |
therefore, that the note in suit including |
natter which was prohibited by law, and a |
greater rate Of interest than six per cent.
being given in violation of the statutes, the |
contract or note is void, and the party will |
De repelled from the court. The Judgment |
IF the Circuit Court will be reversed and a
lew trial awarded, in which the law will |
De charged in conformity with the princi-
1les settled in this opinion.
SHACKLEFoRD, Judge