Tennille Banking Co. v. Quinn

1. Where usurious interest is reserved for a loan of money contracted since the year 1916, and in a suit by the lender against the debtor a judgment is rendered for the principal amount only, the interest being forfeited by virtue of the provisions of the act of 1916 (Acts 1916, p. 48; Park’s Ann. Code, Supp. 1922, § 3438),'providing for a forfeiture of the entire interest when usury is charged, such judgment does not bear interest. Daniel v. Gibson, 72 Ga. 367 (2 a) (53 Am. R. 845) ; Danforth v. National Rank of Elizabeth, 48 Fed. 271 (17 L. R. A. 622, 1 C. C. A. 62). And this is so notwithstanding Civil Code (1910), § 3432, which provides that “ All judgments in this State bear lawful interest upon the principal amount recovered!’ -The act of 1916 prohibits the recovery of any interest where usury is charged. See Daniel v. Gibson, supra.

2. Where a plaintiff sues upon a promissory hote which bears interest at the rate of 8 per cent, per annum from maturity, and the defendant pleads usury and charges that a certain sum has been reserved as usu*160rious interest, and the court enters a judgment for the net amount of the true principal admitted to be due, such judgment, since the act of 1916, supra, does not bear interest.