Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1890-04-11
THE LAWS.
NO. 80.

NO. 80.
An Act Defining Usury and the Penalty for TAX
ing the Same.
Be 1t Enacted by the Legislative Assembly of the
State of North Dakota:
SECTION l. Interest for any legal in
debtedness shall be at the rate Of seven per
centum per annum, unless a different rate
is contracted for in writing, and all con-
tracts shall bear the same rate of interest
after they become due as before; unless it
clearly appears therefrom that such was
not the intention of the parties; and no con-
tract for q greater rate OF interest than
twelve per centum per annum shall be
valid.
SEC. 2. No person, company or orpora-
ton shall directly or Indirectly take or re-
ceive, OF agree to take or receive,
in money, goods or things in action,
or orr in u any other na,, way ~ = gre greater de SUM- I'm. or
ance of money, goods or things in action
than twelve per centum per annum; and in
the computation of interest upon any bond,
note, or other instrument or agreement,
interest shall not be compounded, but any
contract to pay interest not usurious upon
interest over due shall not De construed to
be uSury.
SEC. 3. All bonds, bills of exchange,
prommissory notes, mortgages, contracts
and securities whatsoever, and all deposits
or pledges of goods, wares, merchandise,
or property of any kind, or things in action
whereby or whereupon there shall be
directly or indirectly taken, reserved or
secured, or agreed to be taken, reserved or
secured, any greater sum or value for the
use, loan or fOrbearance of money or things
in action than is provided in section l of
this act, whether the sum or value so
secured, reserved [received] or taken or
agreed to be taken shall appear in or from
c,,nh hNn1 hill r,ntn ocSururon ~a
contract, or otherwise, shall be deemed
usurious, and are hereby declared to be
void from the beginning; provided, that the
provisions of this section shall not apply
to nor invalidate the collection of any
negotiable bill of exchange or promissory
note purchased of the original holder in
good faith for q valuable consideration
before the maturity Of the same; and pro-
vided, further, that the payment OF interest
IN advance for n time not exceeding
ninety days at a rate not exceeding twelve
per cent. per annum shall not be deemed
to be usury within the meaning OF this act.
SEC. 4. In all written contracts for the
loan of money the exact amount agreed
upon to be received for the use, by the
borrower, shall be stated in the contract,
and separately therefrOm, the rate per
centum thereon of interest contracted
to be charged. and if in any contract, either
verbal or written, for the loan of money,
tllC UUIIOWoI lcCclvcS d lcSS SuIQ tllhIl Gilc
principal sum so agreed upon and con-
tracted to be loaned to and received by the
borrower, the said contract shall be deemed
to be usurious except as otherwise herein
provided.
SEC. S. In all cases where the original
owner or receiver of any usurious bill of
exchange or prOmlssory note, shall sell or
part with the same before maturity there
of, or without giving notice to the purchas-
er or receiver OF such bill of exchange or
prOmiSSOry note of its uSuriOuS character,
the maker OF such usurious negotiable bill,
bill OF exchange or prOmissOry note, or his
legal representatives or assigns may recov-
er of such original owner or receiver, or
from any broker or agent or person who
procured or aided or assisted in inducing
and procuring the execution and delivery
OF the same, jointly or severally, the full
amount Of the principal and interestnamed
in and represented by such bill of ex-
change or promissory note, the interest in
case Of recovery to be computed to the
time when such bill Of exchange or prom
issory note shall become due and payable
according to the terms thereof.
SEC. 6. The right of action to recover
from the original owner or receiver, or
from any broker, agent or person who aid
ed or assisted in inducing and procuring
of a usurlous negotiable bill of exchange
or promissory note the amount Of the
principal sum named in such bill or note,
with interest thereon at the rate specified
in such bill or note until the maturity
thereof shall arise and accure and be COM
plete to the maker Of such usurious nego-
table bill Of exchange or prOmiSSOry note,
or to his legal representatives or assigns,
:, on and after the sale before maturity of
such bill of exchange or prOmiSSOry note
by such original owner or receiver; and in
such action it shall not be necessary for
the plaintiff to allege or prove the payment
ofsuch usuriouslnegotiable bill of exchange
or promissory note; nor shall the payment
of such usurious bill of exchange or prom
issory note be a condition precedent to the
collection, from the original owner or re-
ceiver of such bill of exchange or note, or
from any broker, agent or person in any
wise a party to, or aiding and abetting in
the soliciting or procuring Of the execution
and delivery of such bill of exchange or
promissory note sold before maturity, of
the full amount specified in such bill of
exchange or prOmissOry note, with interest
as specified therein to the date Of maturity
thereof; provided, that the provisions Of
this section shall not apply to nor prevent
the collection Of any bond, bill of exchange,
other contract OF security which is in the
hands of the original or any holder who
has not participated in such fee or com
%pensation, nor authorized the taking Of the
same.
SEC. Z. The receipt of, or an agreement
t~"by any broker, loan agent or person to re-
ceive from any person a sun of money or
other consideration as a fee or compensa-
ton for obtaining a loan or f%orbearance Of
money, or IN extension of time on all ex-
listing loan or forbearance of money, where
such sum of money or other consideration
received or agreed to be received as a fee
or compensation by such broker, loan agent
or person, when added to the rate of inter-
est expressed and reserved in the bond,
bill Of exchange, promissory note, mort
gage or other security made or given to evil
dence or to secure such loan, exceeds in
the aggregate the rate Of twelve per cent
um per annum, interest shall be deemed
andis hereby declared to be usury within
the meaning of this act, and all and every
bond, bill of exchange, prOmisSOry note,
mortgage or other contractor security, thus
or in like manner tainted with usury Or
usnriOus purposes, shall be void from the
beginning and subject to the same provis-
ions and liabilities and provisos, and the
maker of such usurious bill of exchange,
prOmiss0ry note, mortgage security or
other contract shall have the same remedy
in the law against the original wne or
receiver of any such usuri0ns bond, bill,
note, mortgage, or other contract Of secur-
ity, or against any broker, agent. or person
who procured, or aided or assisted In pro-
curing the execution and delivery of any