Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1879-03-27
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AN AIT relating to interest on money and
usury.
Be it enacted by the Legislature Of the State of
Miruesota:
Section l. That interest for any legal in
debtedness shall be at the rate of seven dollars
upon one hundred dollars for a year unless a
different rate is contracted for in writing, and
no person, company, or corporation. shall d.
rectly or Indirectly take or receive in money,
goods or things in action or in any other way,
any greater sum or any greater value for the
loan or forbearance of money, goods or things
in action than ten dollars on one hundred dol
lars for one year; and in the computation of
interest upon any bond, note or other instru-
ment Or agreement. interest shall not be COM
pounded. But any contract to pay interest
not usuriOus upon interest overdue shall not
be construed to be usury.
Sec. 2. Every person who for any such loan
or forbearance, shall have paid or delivered
any greater sum or value than is above allowed
to be received, may by himself or his personal
representatives, recover in an action against
the person who shall have taken or received the
same, or his personal representatives, the full
amount Of interest or premium so paid, with
costs, if such action shall be brought within
two years after such payment o, delivery. Pro-
vided, that one-half of the amount SO recov-
cred shall be paid by the officer collecting the
same into the county treasury of the county
where such penalty is collected, for the use Of
the common schools.
Sec. 8. All bonds, bills, notes, assurances,
conveyances, chattel mortgages, and all other
contracts and securities whatsoever and all
deposits of goods, or anything whatever, where
upon or whereby there shall be reserved, Sc
cured or taken any greater sum or value for
the loan or forbearance of any money, goods or
things in action, than is above prescribed, shall
be void except az to the bona ide purchasers of
negotiable papers as hereinafter provided in
good faith for valuable consideration before
maturity. Provided, that no merely clerical
no intent to avoid the provisions of this act
shall constitute usury. Provided further. that
interest ut the rate of one-twelfth of ten per
oentum for every thirty days, shall be con-
strued not to exceed ten per oentum per an
mum. Provided further, that the payment of
interest in advance for one year at q rate not to
exc ed ten per centum per annum, shall not
be construed to constitute usury. Provided
further, that nothing herein shall be construed
to prevent the purchase of negotiable mer-
camille paper, usurlous or therwise, for .
valuable consideration, by an innocent pur
chaser, free from all equities at any price, be-
fore the maturity of the same, when there has
been n" intent to evade the provisions of this
act, or where said purchase has not been q part
of the original usurious transaction. In any
case, however, where the original holder of q
usurious note sells the same to an innocent pur-
chaser, the maker OF said note or his repre-
sentatives shall have the right to recover back
from the said original holder, the amount of
principal and interest paid by him on sale
note.
Sec. 4. Every person, company or corpora
ton offending against the provisions Of this
act, shall be compelled to answer on oath any
complaint that may be exhibited or filed against
him in the district court for the proper coun-
ty, for the discovery of any sum of money,
goods, or things in action 80 taken, accepted or
received, in violation of any of the foregoing
provisions.
Sec. s. Whenever in any action in any court
the defendant shall plead or answer the defense
of usury, either party to the action may be q
witness in his own behalf on tho trial, except
in actions in which the opposite party sues or
defends n administrator or personal repre-
sentative of deceased person; except also, 40
tions in which the opposite party claims as ~
signee, and the original assignee il deceased.
In case of al notes or other instruments bear
ing interest, when no ratio of interest ID speci-
fed after maturity, tho said note or other in
strument shall be construed to bear the same
rate Of interest altar maturity a before. and
until fully peid and setia6sd.