Like Millard, Larson contests Signature's interpretation of Nebraska public policy. In addition, Larsen argues that, as Millard's undisclosed principal, it is entitled to the same defenses contained in the lease as Millard. See Lenart v. Ragsdale, 148 Mich.App. 571, 385 N.W.2d 282, 284 (1986); RESTATEMENT (SECOND) OF AGENCY ยงยง 186, 203 (1958). Therefore, as Larsen's liability is based upon ordinary negligence, not gross negligence, Signature's claim for insured losses is barred by paragraph 14 of the lease.
However, where the borrower has voluntarily satisfied the entire obligation or at least an amount over the principal amount, the lender is entitled to retain the usurious interest paid. Osinski v. Yowell, 135 Mich. App. 279, 287-88, 354 N.W.2d 318 (1984); Lenart v. Ragsdale, 148 Mich. App. 571, 581, 385 N.W.2d 282 (1986). The plaintiffs argue that each note was a discrete obligation, and that the $12,108 payments related only to the $2,000 note of October 26, 1977.