Court Opinion

ID: 9860414
Source: CourtListenerOpinion
Date Created: 2023-09-24 23:21:27.652623+00
Date Added: 2024-06-11T11:22:07.956539
License: Public Domain

BURKE, J., dissenting: The defendants, husband and wife, needed funds to pay delinquent taxes on a vacant tract of land. The husband approached Equitable to procure the loan and was accommodated. The check representing the loaned funds was signed and delivered by Equitable to the defendants who received credit through usual banking channels. The papers evidencing the loan thus made through Equitable were purchased by and delivered to plaintiff in the usual course of business. The defendants made payments on the loan to the plaintiff from time to time until the default which resulted in the judgment. The burden of proof was on defendants to establish usury by a preponderance of the evidence. The purchase of the note and mortgage from the lender, Equitable, at a discount greater than the rate of interest allowed by law does not constitute usury. Defendants, however, claim that Equitable was plaintiff’s agent. Equitable came into the transaction by the initiative of the defendants. The defendants failed to prove that Equitable was plaintiff’s agent or that plaintiff purchased the note and mortgage with notice of usury. The evidence shows that plaintiff is a holder in due course. For these reasons the order confirming the judgment should be affirmed.