Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-06-19
rurIAM OF UsrRA.

Chancellor shackleford, Of this district,
few days since delivered al important
decision touching the rate of interest le-
galy ohargeable by the national banks.
The following is the substance Of the opin-
ion in the case Of Malone, executor, and
the heirs aud creditors Of Alexander Fall
Under the general lawa upon the subject
OF usury in this State, tie party loaning ST
greater rate than six per cent, where il
is iucIudsd in the note, forfeits the excess
over six per cent. Does HE loan 10 Fall
fall within The general rule Of law pro
hibiting usury, or is it construed and 7oy
erned by the acts Of Congress creating the
institution II is a corporate body and
derives its powers from the Law that gave
il vitality, aud il becomes necessary t. ez-
anime the law creating the corporation
All acts within the scope OF the powsrs
conferred are valid, and those prohibited are
void. By thethird section Of the act Of Con
gress, entitled eau act 10 provide 4 national
currency, secured by a pledge OF United
States bonds, and TO provide fer the g,Tcula-
ton and redemption thereof" approved
June 3, 1854, il ia provided that every 5a-
ISOLATION may AXE, receive, reserve aud
charge On any losn or discount made upon
any rlte, bill of exchange, or evidences OF
debt, interest at the rate allowed BY the
laws Of the State or Territory where The
bank is located and no more, except
where, By the laws Of aay State, different
rate is limited fer banks Of issue organized
in any such STATE under this aol and
where no rate Is fixed By the Laws of the
State or Territory, the hanks may take,
receive. reserve or change q rate not ex
ceediuG 7 per ceutum, and such in:er1s,
may be taken IN advance, reckoning the
days for which the noto, biA or evidence OF
debt has to run; aud the knowingly taking,
receiving, reserving or charging 8 rate Of
interest greater than aforesaid, shall be
held and adjudged a i1rfeilure of the entire
interest which The notes. bills " other
evidences Of debt carries with ID, or which
has beer agreed to be paid thereof.
Be- The 53d seclion Of said acl, il ia pro-
yided that II the directors Il any assecia-
lion shall knowingly violate OF knoWiugly
permit any Of lhc officer, arerts OF servants
ofthe association 10 violate any d the pro-
visions Of this act, ali ,hc rights, privilege
and franchises OF the ASSOCIATION derived
from This acl shall be thereby Forfeited
BY the provisions Of the 3Jih section Of the
sci, the association Is expressly prohibited
from taxing or reserving greater rst' ct
interest Than 5iy per cent, that being the
rate Of interest allowed BY law 10 this state
BY ihe $50 section, il is declared q for
feiture Of the rights and franchise u The
association. The bank. by their aHswc5
admit that they retained, when ihe ioaa
vas made. Interest a, The rate oi nine per
ceatum. Upon a reyicw Of the suihuriiie'
am satisfied that she loan OF the Jaoney
by the Thru National Bank was ia direct
violation Of the act creating the bank, and
that the contract is void, aAd that The bsak
Is not entitled 70 recover the principal aHd
legal interest. The object and purposes Of
The law was 10 prevent the taking OF
usurious Interest and il u the lufY OF ihe
courts to enforce IL II Is demanded BY
every consideration Of public Foiiey-