Usury

In old English, signified any compensation paid by a borrower for the use of money; but in modern language, and since precise limits have been set by the laws of most jurisdictions to distinguish lawful from unlawful compensation for loans, permitted or lawful compensation is called interest; and usury is applied only to prohibited or unlawful payment for the use of money. Usury is money given for the use of money; it is particularly defined to be the gain of any thing by contract above the principal, or that which was lent, exacted in consideration of loan thereof, whether it be of money or any other thing. Some make usury to he the profit exacted for a loan made to a person in want and distress; but properly it consists in extorting an unreasonable rate for money, beyond what is allowed by positive law. The letting money out at interest, or upon usury, was against the common law; and in former times, if any one, after his death, had been found to be a usurer, all his goods and chattels were forfeited to the king, &c. And, according to several ancient statutes, all usury is unlawful; but at this time neither the common nor statute law absolutely prohibit usury. By this is meant interest for money lent, not exceeding the settled rate; interest being the lawful gain, usury the extortion of unlawful gain. Jacob. Usury is an unlawful contract on the loan of money to receive the same again with exorbitant increase; that is, not only to receive the principal sum again, but also an exorbitant interest by way of compensahowever, abolished by Stat. 17 & 18 Vict, ch.

90.

Brown. Usury originally meant any premium or reward for the use of money or other commodities or things.

Henry v

Bank of Salina, 6 Hill, 523, 528.

It now signifies extorting or taking a rate of interest for money beyond what is allowed by law.

Wilkie v. Roosevelt, 3 Johns. Cas 206.

Usury is the taking of more for the use of money than the law allows.

Gaar v. Louisville B. Co., 11 Bush, 180.

Usury consists in taking or reserving, corruptly, a greater sum than at the rate allowed by the statute for the forbearance of a debt or demand.

Camp v. Bates, 11 Conn. 487.

To constitute usury, within the prohibitions of the law, there must be an Intention knowingly to contract for and to take usurious interest; for, if neither party intend It, and act bona fide and innocently, the law will not infer a corrupt agreement. Where, indeed, the contract Imports usury upon its very face, as by an express reservation of more than legal interest, inquiry is at an end. But where the contract is, on its face, for legal interest only, then proof is necessary that there was some corrupt agreement to cover usury.

Bank of the United States V. Waggener, 9 Pet. 378.

Two things arc! necessary to constitute usury, — a loan, and the taking of more interest than the law allows. Wherever these two facts are shown to exist, the law pronounces the intent with which they were done to be corrupt; and this presumption cannot be rebutted by any proof of honesty of purpose.

Reed v. Coale, 4 Ind. 28.3.

Nothing short of a corrupt and illegal contract in violation of the statute will constitute usury. It must be a contract or agreement for the loan or forbearance of money, goods, or things in action, by which Illegal interest is reserved, or agreed to be reserved or taken; otherwise, usury does not exist.

Lesley v. Johnson, 41 Barb. 359; Woodruff V. Hurson, 32 Id. 557. UT.

That; as. This Latin particle properly introduces a final cause or object. In conveyancing, in old English practice, ut was appropriated to the expression of a qualification or modus (q. v.), as si was adopted to express a condition, and quia a consideration.

Ut currere solebat

As it was wont to run. See Aqua currit et debet currere, ut currere solebat.

Ut res magis valeat qnam pereat

That the subject-matter may rather have effect than be destroyed. See Benignoe faciendm sunt interpretationes, &c.

Uti possedetis

As you possess. ciple of a treaty of peace by which, each: belligerent is to retain aE the territory of which it holds possessioa, including ■what it has acquired by force during the war.

Utile per inutile non vitiatur

The useful is not vitiated by the useless. Surplusage does not vitiate othei good, and valid matter. This maxim applies more particularly to pleading, the rule being that immaterial matter in a declaration, or plea is mere surplusage-, and does not vitiate it. The rule is the same as to indictments, except where the obnoxious, averment is part of the description of tiie of Eence, ini which case it will be fatal'. In conveyancing, where words of known signification, are so placed in a deed as to make it repugnant, they are to be rejected in the' same manner as they would' be if they were meaningless. So, if a grant be express and certain, a repugnant, habendum, will not vitiate it; but, if the estate granted is not express, but only arises by implication of law, then a, hahendum differing materially from the- grant may defeat it.