Daily globe., 1879-04-11
AN ACT relating to interest on money and
usury. |
Be it enacted by the Legislature of the State Of

AN ACT relating to interest on money and
usury.
Be it enacted by the Legislature of the State of
Minnesota:
Section l. That interest for any legal in
debtedness shall be at the rate Of seven dollars
upon one hundred dollars for year unless
different rate is contracted for in writing, and
no person, company, or corporation, shall di-
rectly or indirectly take or receive in money,
goods or things in action or in any other way,
any greater sum OF 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 agreem ent, interest shall not be com!
pounded. But any contract to pay interest
not usuriOus upon interest overdue shall not
be construed to be usury. !,
Bee. 2. Every person who for any such loan
or forbearance, shall have paid or delivered
any greater sum or value than 10 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 20 paid, with
COSTS If such action shall be brought within
two years after such payment or delivery. Pro-
vided. that one-half of the amount 90 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. s. All bonds, bills, notes, assurances,
conveyances, chattel mortgages and all other
contracts and securities whatsoever, and all
deposits of goods, OF anything whatever, where
upon or whereby there shall be reserved, se-
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 as to the bona fde purchasers of
negotiable papers as hereinafter provided in
good faith, for valuable consideration before
maturity. Provided, that no merely clerical
error in the computation Of interest made with
no intent to avoid the provisions of this act
shall constitute usury. Provided further. that
interest at the rate Of one-twelfth of ten per
oentum for every thirty days, shall be con-.
strued not to exceed ten per centum 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 usrry. Provided
further, that nothing herein shall be construed
to prevent the purchase Of negotiable .mer-
camille paper, usurlOus or therwlse, for q
valuable consideration, by an innocent pur
chaser, free from all equities at any price, be-
been M intent to evade the provisidas of this
act, or where slid purchase has not been part
OF the original usuriOus transaction. In any
case, however, where the original holder of a
usurious note sells the same to an innocent pur-
chaser, the maker of said note or his repre-
ocut6uAVSS Su1ll nave tuS " IcCoFGI DICK
from the said original holder, the amount Of
principal and interest paid by him sale.
note. {
Sec. 1. Every person, company or corpora
ton offending against the provisions of this
act, ahall be compelled to answer on oath any
complaint that may be exhibited OF 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 30 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 cr answer the defense
of usury, either party to the action may be
witness in his own behalf on the trial, except
in actions in which the opposite party sues or
defends - admins TRAITOR or personal repre-
sentative Of 3 deceased person; except also, 40
tions in which the opposite party claims . ~
signee, and the original assignee is deceased.
In case of all notes or other instruments bear
ing interest, when no rate Of interest is speci-
fed after maturity. the said note OF other in-
strument shall be construed to beU tho same
rate Of interest after maturity q before and
unfil fally paid and eatiG6ed.