Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1875-11-03


i,ia u hnuon'ii pnhk takes more ina
legal interest, " iof1elts the cntlr
interest
q usurious interest taken ny nations
oank may be deialkcd against tn
amount suod ior py inc oniik'
D. Inc fennsyivnnln act II asseinbl
which units the time IN which usnr
Gus interest may be recovered bac
TO SIX months, does not apply I
transactions with national banks.
Error 70 common. pleas oi Schuyikl
county. 4. f-.tl
Oplnlon ny Gordon, j, October II
1872
ms was an action brough BY tn
government National bank, OF Pott'
vile, Against John Lucas 4 Co, on tw
certain notes ana one check, all 9
which were drawn by George J. Rich
ardson TO tho defendants, and by then
endorsed to the plalntlif John Lucas
on part oil the defendants, filed an All
davit OF defence, setting forth "Tha
the said John Lucas d Co. were th
payees ON tho notes and check upol
which SUIT is founded and that Gee
j.. Richardson was The maker. Tha
sad notes and check were sold to th,
said plaintlii ut y discount OF from II
10 ~ per cont. per annum, and tha
inc defendants received IRON the plain
TN thc amount OF said notes and check
less said rate OF discount, In addition
TO the above, said plaintiff has receive,
from taid 'corgc j. richardson tcor
rected by supplemental affidavit Il
read defendants instead Of "Georg'
j. Richardson on his ltbeir) notes
not less tinn three thousand dollars u
excess OF the legal rate oil interest, th'
same having Deeh purchasoh py pam
tiii NJ aDonl the rate OF twcnty-one U
twcntylour per cent. per annum dis
count IRON the sald defendants, and
sald defendants claim from the pam
llils double the amount OF interest nn
der The act OF Congress On the 'tl
day oil July, 1913, on molioh oil tht
pialhtiil couhsel the court entered
Judgment againt the deiendantsior the
whole amount Of thc piaintii claim
with interest from and after the ma,
turIty oil the paper striking out ana
disaliowing' however, eighteen pei
cent the amount oil discount. Ihls
Judgment Is erroneous IN that IL IN
clndes interest on tho paper IN SUIT,
from the time 1t fell due, The Act OF
congress speaks IN inns wise; ANA
knowingly taken, receiving, or charg-
ing rate OF interest greater than
aforesaid, shall be held and adJudged a
forfeiture oi the entire interest winch
the note, blll, or other evidence OF debt
carries with II, or which has been
agreed 10 DC paid thereon. hev' stat,
sec oi9S.
observe, " Is The entire interest
whicn ,he oi'i or note carries WIN II
mat Us forfeited, ana not merely that
which inc party borrowing may agree
TO pay Inc Illegal act destroys the
interest bearing power oil the obliga-
ton, and as there can be no point in
the history Of such paper at which il
is freed from tho taint Of illegality, so
it follows there can be no point Of time
from which il can bear interest. The
plaintiff was entitled to recover the
face of the note and check. and no
more Brown ys. Second National
bank Of Erie I,epal lntelligencer Feb.
ruary 2s. 1873. Technically, the lat
ter part of the affidavit of defence is
bad. tor II claims as a set off. that
which the net of Congress- imposes ms
a penalty on tho usurious transaction,
To wit. doublo the amount of the inter.
cat Maid In this defendants had no
sucb interest as would enable them "a
use il by way of ,lcfalcation for Il could
be aco1ired only through an action OF
~. - - A L-.-..t Al,