A. executed B bond and mortgage to B. to secure andpound;2,000 lent to him by B., with interest at 5%.
B having sold out a sum of stock to enable her to make the loan, the dividends of which exceeded the interest of the andpound;2000 at andpound;5 per cent., A. afterwards agreed, in consideration of her Ietting the andpound;2000 continue secured at interest as aforesaid, to transfer to her, when requested so to do, the amount of the stock sold out, or, at her option, to pay to her a sum of money sufficient to repurchase it, and, in the meantime, to pay to her the amount of the dividends of it, intstead of the interest of the andpound;2000.
Held, that the agreement was additional to and not substitutional for the bond and mortgage, and was, therefore, usurious.
Citations:
[1844] EngR 772, (1844) 14 Sim 179, (1844) 60 ER 325
Links:
Contract, Banking
Updated: 02 May 2022; Ref: scu.305364