Opinion
Gen. No. 42,634. (Abstract of Decision.)
Opinion filed November 6, 1944 Released for publication November 24, 1944
USURY, § 23 — when brokerage agreement constituted usury. Where plaintiff borrowed from defendant finance corporation the sum of $8,000 on promissory note secured by chattel mortgage, but plaintiff actually received only $6,400 because of $1,600 check indorsed back to defendant as purported brokerage fee, and subsequently, during the first 11 months, plaintiff repaid the sum of $1,263 rather than payments aggregating $2,475 due for that period under the terms of the agreement, held that plaintiff was entitled to credit of $1,600 on the principal, which, together with $1,263 he had actually paid, aggregated more than the amount due on chattel mortgage before it was foreclosed, and therefore there was no default and consequently no right to foreclose, since to hold otherwise would permit defendant to evade and circumvent usury (Ill. Rev. Stat. 1943, ch. 74, par. 4 et seq.; Jones Ill. Stats. Ann. 67.04 et seq.).
See Callaghan's Illinois Digest, same topic and section number.
Appeal from the Circuit Court of Cook county; the Hon. JOHN PRYSTALSKI, Judge, presiding.
Order reversed and cause remanded with directions. Heard in the second division, first district, this court at the April term, 1943.
Harry G. Fins, for appellant;
M. Robert Sturman, for appellee.
ON REHEARING.
Not to be published in full. Opinion filed November 6, 1944; released for publication November 24, 1944.