Opinion ID: 1331729
Heading Depth: 1
Heading Rank: 2

Heading: middletown national bank

Text: The facts in the action involving Middletown National Bank are similar to the facts in the action involving Community Bank. The action involving the appellee, Middletown National Bank (hereinafter Middletown Bank), is before this Court upon the petition of the appellants, Charles Keyser and Hamilton Electronics Corporation, for an appeal from the final order of the Circuit Court of Marion County, West Virginia. By order entered May 11, 1979, upon a jury verdict, Middle town Bank recovered $11,161.30, plus interest and costs, from the appellants. This recovery was based upon the default of the appellants upon a $25,000 loan. The appellants again failed in circuit court to recover upon their theory of usury. On June 30, 1971, Middletown Bank loaned $25,000 to Charles Keyser (hereinafter Keyser). That loan was represented by a check made payable to C. M. Keyser. The record indicates that Keyser applied for the loan as an individual. In return for the loan, the appellants, Charles Keyser and Hamilton Electronics, executed a note dated June 30, 1971, whereby the appellants jointly and severally promised to repay the $25,000 loan with interest at 7½ per cent per annum. The note was to be paid in installments on a monthly basis over a ten year period. The collateral for the loan was described upon the note as follows: Debentures No. 10, 11, 12, 14, 17, for Hamilton Electronics Corporation, Due June 15, 1981, and dated June 4, 1971. With respect to the collateral described in the note, the record indicates that $50,000 in Hamilton Electronics debentures owned by Keyser was placed with Middletown bank. As additional collateral for the loan, a life insurance policy was assigned to the bank. Furthermore, a checking account in the amount of $12,500 was opened on June 30, 1971, at Middletown Bank in the name of Hamilton Electronics. That checking account was initiated by a deposit made by Hamilton Electronics. The record indicates that the checking account was not an interest bearing account. Moreover, the record indicates that during the period in question the appellants could not withdraw money from the checking account without the consent of the bank. Until the time of default, payments on the note held by Middletown Bank were made by Hamilton Electronics. [3] Subsequently, Middletown Bank applied the funds in the checking account to the unpaid balance of the loan. On October 19, 1978, Middletown Bank instituted an action in the Circuit Court of Marion County against Charles Keyser and Hamilton Electronics for the unpaid balance of the $25,000 loan. Willene Keyser was not joined as a party. The appellants filed a counterclaim against the bank asserting that the loan was usurious. The circuit court, as it did in the Community Bank action, determined that West Virginia law barred a corporation from asserting the defense of usury. Therefore, the circuit court dismissed the counterclaim of Hamilton Electronics against Middletown Bank. Moreover, the circuit court held that pursuant to federal law Charles Keyser was limited in his recovery, if any, against the bank to two times the interest he paid upon the loan. Trial began in the circuit court on May 8, 1979, and the action of Middletown Bank and the usury counterclaim of Charles Keyser were submitted to the jury. As reflected in the final order of the circuit court entered May 11, 1971, the jury found against Keyser upon the counterclaim and found in favor of Middletown Bank in the amount of $11,161.30. It is from the final orders of the Circuit Court of Marion County in the Community Bank and Middletown Bank actions that the appellants appeal to this Court.