William Johnson

“ It is very clear, that the Kentucky contract must be considered as a new and substantive contract. It is governed by a distinct code of laws from the Rhode-Island contract, and cannot be affected by the taint of usury which might have been transmitted to it under some circumstances, had it taken place in Rhode-Island. It was, then, equivalent to a payment and reloan; and no one can doubt, that money paid on an usurious contract, is not recoverable back beyond the amount of the usury paid. ”

“ Again, it is perfectly established, that the plea of usury, at least as far as to landed security, is personal and peculiar; and however a third person, having an interest in the land, may be affected incidentally by a usurious contract, he cannot take advantage of the usury. Some exceptions may exist to this rule under bankrupt systems, but they are statutory and peculiar.
Here, then, the case presents a third person, the assignee of an equity of redemption, setting up a defence, which, in one aspect, Prentiss himself cannot set up ”

“ As to the cash, it is a simple allowance of interest upon a bill drawn for the 4,980 dollars, upon its being returned and taken up by another, and cannot be excepted to. And, as to the first, we perceive in the transaction about the second payment, a sufficient explanation of the origin of the addition made in that instance. As Prentiss acquiesced in having a bill drawn for the second year, payable in Philadelphia, we may reasonably conclude, that the agreement was to pay the rent or interest, which ever it may be called, by drawing such a bill. ”

“ It would, indeed, be astonishing, were it otherwise, for the contrary rule would hold out no relief to the borrower; it would be only transferring his money from the pocket of the lender to the pocket of the holder of the equity of redemption. ”

“ In the effort to sustain his defence under the laws of Rhode-Island, the defendants have introduced into the cause the examination of their co defendant, Prentiss, taken at the instance of themselves, and received in the Court below subject to legal exceptions. We are not informed whether the Court below actually recognised it as competent evidence, since the grounds on which that Court dismissed the bill are not spread upon the record. It is enough that it does not appear to be rejected ”

“ The contract of 1817, in which this mortgage originated, was executed in Kentucky; and had its inception in an intimation from Prentiss of a design to avail himself of the plea of usury. Upon this, De Wolf repaired to Kentucky, and there instituted a new negotiation with Prentiss personally, having for its object to clear the contract from all usurious incidents, and to take security for the sum loaned, at the legal interest of Kentucky, which, as well as that of Rhode-Island, is six per cent. ”

“ The second, treasury notes to the amount of 20,211 dollars 94 cents, received at par; and the third 30,802 dollars 73 cents, bills drawn upon Philadelphia also taken at par. Upon these three items there was an estimated loss sustained of about 3,400 dollars. ”