Summary

Portrait of Noah Haynes Swayne Noah Haynes Swayne Farmers' and Mechanics' National Bank v…

There was reason why the rate of interest should be governed by the law of the State where the bank is situated; but there is none why usury should be visited with the forfeiture of the entire debt in one State, and with no penal consequence whatever in another. This, we think, would be unreason, and contrary to the manifest intent of Congress.
Where a statute prescribes a rate of interest, and simply forbids the taking of more, and more is contracted for, the contract is good for what might be lawfully taken, and void only as to the excess.
Source: Wikisource

Portrait of Noah Haynes Swayne Noah Haynes Swayne Farmers' and Mechanics' National Bank v…

The point to be sought is the intent of the law-making power. The offence of usury under this section is as great where the local law does not, as where it does, define the rate of interest. The same considerations apply in both cases. Why should Congress punish in one class of cases, and, so far as its action is concerned, exempt in the other?
Source: Wikisource

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