William Johnson

“ That the facts set forth, and the averments in said plea, make out a case in which the corporation has taken more than at the rate of six per centum per annum upon a loan or discount contrary to and in violation of the ninth rule of the fundamental articles of the constitution of the corporation. 2. That the plea does make out such a case where the notes sued on, or the contract therein expressed to pay the plaintiffs five thousand dollars is void in law, so that no recovery can be had thereon in this suit. ”

“ The question here propounded has relation exclusively to the legal effect of a violation of the provision in the charter, on the subject of interest; and does not bring in question the operation of the statute of usury of Kentucky upon the validity of this contract. To understand the gist of the question, it is necessary to observe, that although the act of incorporation forbids the taking of a greater interest than six per cent, it does not declare void any contract reserving a greater sum than is permitted. ”

“ Persons who engage in such transactions must not bring their cases before a court of law, &c.'
So in the case of assurance in illegal voyages, even where the underwriters have contracted with their eyes open, they are notwithstanding permitted to avail themselves of the plea of illegality ad libitum; as in the cases of Camden vs. Anderson, 6 T. R. 723, adjudged in the king's bench and affirmed in the exchequer; where it is declared that 'the defence is founded upon a principle of law which is permanent to all obligation, by which the parties to a contract can bind themselves. ”