The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-01-18

laws applicable to all persons within its
jurisdiction, and 1t may declare. by special
laws, certain acts to be criminal offenses
when committed by officers and agents of
Its own banks and institutions, 1t is
without lawful power to make such spe-
.cial laws applicable to banks organized
and operated under the laws of the United
States.
1t is shown by Sections 5l97-9S of the
revised statutes that congress has con-
sdered the matter of usury and it must
be concluded has covered the subject as
fully as was desired This being so, I
am OF the opinion that an officer or agent
of national bank would not be amenable
to state law making usury a misde-
meanor,"
A state law prohibiting the excessive
charging of interest should apply with
equal force to both national and state
banks. From the opinion of the solicitor
OF the treasury state statute making
usury a criminal offense would have no
application to the officers, agents or en-
ployes Of national banks.
No complaints have been made as to
excessive rates on real estate loans. The
abuse in the practice of usury, as rule,
applies to chattel loans and those secured
by assignments of wages, and pledges. In
providing against such abuse in other
states such loans have been classified In
New Jersey the statute enacted to pre-
and including $780, exclusive of interest,
In a class
Recommendations.
I recommend -or your consideration the
question of interest and usury and sug-
gest that you consider the advisability of
enacting a statute, following limtationss
of the constitution. which fixes the maxi
mum legal rate at six per cent, and the
maximum contract rate at ten per cent
In addition that you permit graduated
principal incidental fee to be charged on
chattel loans amounting to 500 exclusive
of interest, the minimum incidental fee
E - mi. l..
dental fee. however. should be safeguard
ed in such way as to prevent abuse and
the avoiding of the interest laws by means
of subterfuge. BY way OF penalty
recommend that you provide that as to
chattel loans securing amounts up to three
hundred dollars, exclusive of interest
wherever rate of interest and incidental
fee is charged or contracted for in excess
of the amount permitted by the interest
statute, that the filing of the mortgage
shall not operate to create lien in a
civil or crominal proceeding that in addi-
tion that the party paying the excessive
interest, or his legal representative, may
recover from the party collecting same
twice the amount of interest so paid, and
that 1t shall be the duty of the county
attorney to bring such action in the name
of the state for the use and benefit of the
party paying such excessive interest, in
each action to be taxed as a part of the
costs fee equal to ten per cent Of the
amount recovered, provided in no case
shall the fee be less than ten dollars one
half of said fee to be paid into the county
treasury to the credit of the road fund
and the other half to be retained by the
county attorney as his compensation: that
where this act is wilfully violated with
the consent or knowledge and acquiesence
of the board of directors of state bank
the governor of the state may require the
attorney general to bring an action in the
district court of the county in which the
state capital is located to have the char
ter Of said bank cancelled and the bank
81 a fnh tterh lA ka,, 4
ment Is in cases OF insolvent banks: that |
in all actions brought to foreclose a lien !
by virtue of a chattel mortgage. where the |
original debt, secured by such chattel |
mortgage, exclusive Of interest, does not |
exceed three hundred dollars the plain |
tiff be required to allege and prove that |
he has not violated this interest act. ami |
where the proof shows violation of this |
act that the lien he forfeited
further recommend that you consider |
nnd mass an act 20 regulate pnwn shops.