Savannah Sav. Bank v. Logan

• Decision Date: 03 August 1896
• Citation: 25 S.E. 692,99 Ga. 291
• Parties: SAVANNAH SAV. BANK v. LOGAN.
• Court: Georgia Supreme Court

25 S.E. 692

99 Ga. 291

SAVANNAH SAV. BANK v. LOGAN.

Supreme Court of Georgia

August 3, 1896

Syllabus by the Court.

1. Where a debt, including both principal and interest, and due by installments, if paid according to the terms of the contract is free from usury, the transaction is not rendered usurious by the voluntary payment of the debt in full before some of the installments matured, although, as a result, the creditor would receive, in the aggregate, a sum amounting to more than the principal and the maximum legal rate of interest.

2. That a creditor holding such a debt, which was secured by a mortgage, threatened foreclosure if the installments past due were not paid, and at the same time refused to cancel the mortgage unless the entire debt, including installments not due, was paid, did not amount to duress, nor render involuntary a payment by the debtor of the whole debt, even though such payment was made for the purpose of having the mortgage canceled; nor, under such circumstances, was the debtor entitled to a rebate of interest on the unmatured installments.

Error from city court of Savannah; A. H. MacDonell, Judge.

Action by Annie M. Logan against the Savannah Savings Bank. Judgment for plaintiff. Defendant brings error. Reversed.

The following is the official report:

Annie M. Logan sued the Savannah Savings Bank, alleging: On December 14, 1892, she gave a note for $1,300 to defendant and to secure its payment made to defendant a note, and executed to defendant a mortgage on certain described and. Said note represented $1,050 principal and $250 interest, for a length of time not stated in the note or mortgage. The mortgage provided that payments on the note should be made in equal monthly installments of $30 until it was paid. Petitioner was unable to pay the installments regularly or promptly, but did pay defendant, from time to time, amounts aggregating $345. Defendant demanded the amount claimed by it as due and unpaid on October 11, 1894, to wit, $975.77. To save her property from being sold under foreclosure of the mortgage and at a loss, and to save costs, she was obliged to mortgage the property to get the money to pay the demand. On October 11, 1894, she paid defendant, under protest, said sum of $975.77, because it refused to cancel the mortgage and note until said amount was paid, and it was necessary that the mortgage should be canceled to enable her to execute another mortgage on the property as above stated. On said date she owed the bank only $832.40, as will appear by reference to a bill of, particulars attached. The difference between this sum and the $975.77 is usurious, being for interest charged at a higher rate than 8 per cent....