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15 Iowa 298

Switz v. Platts

Supreme Court of Iowa

Decided December 9, 1863

Supreme Court of Iowa · decided 1863-12-09

This cause was submitted to the Court, and upon the evidence introduced the following finding was made: 1. That defendant made, April 6th, 1858, a loan of one A. M. Yedder, through the plaintiff as the agent of Yedder, of $950; agreeing to pay fifteen per cent interest to Yedder, and ten per cent to the plaintiff, and gave Yedder his note, dated 6th April, 1858, for $1,200 secured by deed of trust on fifty acres of defendant’s farm. 2.

Decided 1863-12-09

Baldwin, Ch. J.

¶1— A motion was made by the defendant to set aside the finding of the Court and the conclusions of law thereon, and the overruling of this motion is assigned as error.

¶2The legality of the trustee’s sale is not in any manner questioned. The title to the fifty acres of defendant’s farm by virtue of this sale passed to Yedder. The contract, therefore, by which Yedder agreed to reconvey was separate and distinct from the original one, and while it appears that Yedder agreed to take in consideration the amount of the original or old indebtedness, yet this fact alone cannot place the parties in the position they were before the sale was made, as it respects the usurious contract, even so far as Yedder is concerned. This case is unlike that of Campbell v. McHarg et al., 9 Iowa, 355, cited by counsel, where this Court held, that where there was a change in the character of the securities, the usurious taint if once it existed was carried forward in the new evidences of indebtedness.

¶3But if the plea of usury could be interposed in an action by Yedder to recover the amount defendant agreed to pay for the reconveyance of the fifty acres, could this defense be set up as against the plaintiff under the statement of facts as above made. It is true that plaintiff was fully acquainted with all the equities of both parties, and was advised of the consideration for which the note sued on was given, but he took the note at the request of *301defendant and advanced to Yedder the money tbereon. Plaintiff was not a party to a usurious contract, nor was he the recipient' of any usurious interest. He advanced the money for which the note was given at the instance and request of defendant.

¶4Affirmed.

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