INDIANA.

I. Interest. The legal interest in Indiana is six per cent., which may be taken in advance, if so expressly agreed.

II.-Penalty for Violation of the Usury Laws.If a greater rate of interest than as above shall be contracted for, received or reserved, the contract shall not, therefore, be void; but if it is proved in any action that a greater rate than six per cent. per annum has been contracted for, the plaintiff shall only recover his principal, with six per cent. interest and costs; and if the defendant has paid thereon over six per cent. interest, such excess of interest shall be deducted from the plaintiff's recovery.

III.-If, in any action for recovery of a debt, it is proved that previous to the commencement of the suit the defendant has tendered the amount due, with legal interest, the defendant shall recover costs, and the plaintiff shall only recover the amount tendered.

IV. Damages on Bills.-Damages, payable on protest for non-payment or non-acceptance of a bill of exchange, drawn or negotiated within the State of Indiana, if drawn upon any person at any place out of this State, are 5 per cent. Beyond such damages no interest or charges accruing prior to protest shall be allowed, and the rate of exchange shall not be taken into account.

V. Foreign Bills.-The damages payable on protest for non-payment or non-acceptance of a bill of exchange, drawn on any place not in the United States, are, on the principal of such bill, 10 per cent. No damages beyond the cost of protest are chargeable against the drawer or the endorser of either species of bill, if, upon notice of protest and demand of the principal sum, the same is paid.

VI. Sight Bills.-Grace is allowed on all bills of exchange payable in Indiana, whether sight or time bills.

Decisions.

1. A clause in the charter of a corporation authorizing the company to borrow money on such terms as might be agreed upon between the parties," empowers them to borrow at a rate of interest beyond that established by the general law. Morrison vs The Eaton, &c., Rail-Road Company, 14 Tanner's (Indiana) Řeports, 110. 2. A tender of the simple value of a specific article, after failure to deliver, is not sufficient; interest to the time of the tender should be included. Hamar vs. Dimmick, 4 Tanner's (Indiana) Reports, 105.

3. The reservation of ten per cent. interest on the bonds, being valid and not usurious by the laws of Ohio, the guaranty of A. was also valid; and the agreement sued on being merely substituted as a security, was not tainted with usury. In reality, the instrument sued on amounts only to an agreement to pay a given sum of money, being the amount of the principal and interest of the bonds. 14 Tanner's Reports, 15.

4. A plea of usury must specify the particulars of the contract upon which the usurious interest is alleged to have been taken or reserved. Engler et al. vs. Collins, 16 Harrison's (Indiana) Reports, 189.

5. A plea of usury, which purports to answer the whole cause of action, when the facts pleaded are a bar to a part only of the claim, is bad on demurrer. Moorman et al. vs. Barton, 16 Harrison's (Indiana) Reports, 206.

6. An agreement to extend the time of payment of a promissory note, in consideration of usurious interest, is not binding, and will not discharge a surety. Brown vs. Harness, 16 Harrison's (Indiana) Reports, 248.

XXII. IOWA.

Ten

I. Interest. The legal rate of interest in Iowa is six per cent. per cent. may be charged on special contracts. On judgments, interest is chargeable as on the contract.

II. Penalty for Violation of the Usury Laws.-Forfeiture of the excess of interest paid, for the benefit of the School Fund. The borrower is by law a competent witness to prove usury.

III. Damages on Bills.-The rates of damages allowed on non-acceptance or non-payment of bills drawn or indorsed in this State, are as follows: If drawn upon a person at a place out of the United States, or in California, or in the Territories of Oregon, Utah, or New Mexico, ten per cent. upon principal, expressed in the bill, with interest from time of protest. If drawn upon a person at a place in Iowa, Missouri, Illinois, Wisconsin, or in Minnesota, three per cent., with interest. If upon a person at a place in Arkansas, Louisiana, Mississippi, Tennessee, Kentucky, Indiana, Ohio, Virginia, District of Columbia, Pennsylvania, Maryland, New Jersey, New York, Massachusetts, Rhode Island, or Connecticut, five per cent., with interest. If drawn upon a person at a place in any other State, 8 per cent., with interest. (Code, §965.)

IV. Sight Bills.-Grace is allowed on bills and notes, according to principles of the law merchant, and notice to indorsers, etc., according to the rules of the commercial law. (Laws, 1852-3.)

Decisions.

Bills of Exchange and Notes.-A person can not be rendered liable on a bill of exchange or promissory note, unless his name, or the style of the firm of which he is a member, is attached to some portion of it as a party. 1 Green's Iowa R., 231. A bill of exchange drawn in one State upon a person residing in another State is treated as a foreign bill. 1 Iowa, 388.

When no time of payment is mentioned in a note, it is in contemplation of law payable on demand. 1 Iowa, 552.

The lex loci contractus will govern the liability of indorsers, and it will be presumed that the lex mercatoria prevails in those States, rendering the indorsers liable on demand and notice, without suit against the makers. 1 Iowa, 388.

Where a lost promissory note, which was made payable to bearer, is the ground of an action in chancery, to enable the complainant to recover, he must indemnify the defendant by bond and security against all claims on the note; such indemnity may be required by decree of the court, and the complainant authorized to recover on compliance therewith, and on payment of costs. 1 Iowa, 48.

Where a person, not a party, writes his name on the back of a negotiable promissory note, the law presumes that he is a strictly commercial indorser, even when his indorsement can not be made operative without the aid of another. Iowa, 331.

1

Interest-By a provision of statute, an account bears interest from the time of its liquidation; and that will be presumed from the day the account was presented for payment, if no objection is made to its correctness. 1 Iowa, 336.

In order to recover interest on an account, it should be averred in the declaration and specified in the bill of particulars. Ibid.

Under the statute authorizing parties to contract for interest not exceeding twenty per cent. per annum, it was legal to make a note drawing twelve per cent., and if not paid when due, fifteen per cent. It will not be considered by a court of equity as a contract for penalty, but for interest after a given day. 1 Iowa, 180.

XXIII. KENTUCKY.

I. Interest.—The legal rate of interest in Kentucky is six per cent. No higher rate of interest is allowed even on special contracts. All contracts made, directly or indirectly, for the loan, or forbearance of money, or other thing, at a greater rate than legal interest (6 per cent per annum,) shall be void for the excess of legal interest.

II. Penalty for Violation of the Usury Laws.-If any discount or interest greater than the legal interest or discount is taken by any bank, or other corporation, authorized to loan money, the whole contract for interest shall be void, and any thing paid thereon for interest may be recovered back by the person paying the same; or any creditor of his may recover the same by bill in equity.

Banks, or other monied corporations, or individuals, are not prevented, in discounting bills of exchange, from taking a fair rate of exchange between the place where it is bought and the place where it is payable, in addition to the discount for interest. But such privilege of buying bills of exchange at less than par value, shall not be used to disguise a loan of money at a greater rate of discount than the legal interest or discount.

III. Damages on Bills.-No statute is in force in Kentucky upon the subject of damages on inland bills of exchange.

IV. Foreign Bills.-Where any bill of exchange, drawn on any person out of the United States, shall be protested for non-payment or nonacceptance, it shall bear ten per cent. per year interest from the day of protest, for not longer than eighteen months, unless payment be sooner demanded from the party to be charged. Such interest shall be recov ered up to the time of the judgment, and the judgment shall bear legal interest thereafter. Damages on all other bills are disallowed. (Revised Statutes, pages 193 and 194.)

V. Sight Bills.-Grace is allowed, by some banks, on bills, drafts, etc., payable at sight, but the point is not yet fully settled in this State.

Decisions.

1. Partial payment on a debt bearing interest shall be first applied to the extin guishment of the interest then due.

2. The notarial protest, under the notarial seal, of the non-acceptance or nonpayment of a foreign bill, shall be evidence of its dishonor; but the protest may be disproved.

3. A suit may be maintained against all, or some, or any of the parties to a bill of exchange; and a failure of proof as to one or more defendants can not prevent judgment against the others or either of them.

4. Where a bill is payable to the drawer's order, and endorsed to his agent, the endorsement is virtually to himself, and no averment of his having paid it is necessary. 8 Dana, 133.

5. In an action upon a foreign bill, the protest is competent evidence to prove presentment of the bill to the acceptor, and non-payment. 3 B. Monroe, 10.

6. Protest of a foreign bill is necessary to a recovery thereon against the drawer or endorsers; and in Kentucky the demand and noting for protest must be made by ne notary himself; it is not sufficient that this was done by his clerk, unless it appear that such delegation of authority is sanctioned by the custom of the place where the presentment was made. 6 B. Mource, 60.

XXIV. LOUISIANA.

1. Interest.-1. All debts shall bear interest at the rate of FIVE per cent. from the time they become due, unless otherwise stipulated. (Act March 15, 1855.)

2. Conventional interest not exceeding eight per cent. per annum may be contracted for. Ibid.

3. The owner of any promissory note, bond, or written obligation, for the payment of money to order or to bearer, or transferable by assignment, shall have the right to collect the whole amount of such promis sory note, bond, or written obligation, notwithstanding such promissory note, bond, or written obligation may include a greater rate of interest or discount than eight per cent. interest per annum. Provided that such obligations shall not bear more than eight per cent. interest per annum after their maturity until paid. (Act of March 2d, 1860.)

II. Damages on Bills.-The damages on bills of exchange, negotiated in Louisiana, payable in other States, are uniformly 5 per cent.

III. Foreign Bills.-The damages on foreign bills of exchange, returned under protest, are uniformly (Statute of 1838) 10 per cent. IV. Sight Bills.-There is no statute upon this subject in Louisiana. A decision has been made in one of the inferior courts allowing three days' grace on sight bills, but the usage is to pay on presentation.

Decisions.

By the laws of Louisiana, a notary is required to record, in a book kept for that purpose, all protests of bills made by him, and the notices given to the drawers or indorsers, a certified copy of which record is made evidence. 5 Howard's U. S. R. 53.

Under these laws, therefore, a deposition of the notary, giving a copy of the original bill, and a copy of his record, stating a demand of payment, subsequent protest, and notice to the drawers and indorsers respectively, is good evidence. Ib.

Where a bank in which a note has been deposited for collection places it, in case of non-payment, in the hands of the notary to whom its own business is uniformly intrusted, to be protested, it will not be responsible for the failure of the notary to protest the note, or to notify the proper parties, having shown the same care and attention in the management of the business intrusted to it which men of common prudence bestow on their own affairs. Baldwin v. Bank of Louisiana, Supreme Court, La., 1846.

If the principal be sued for and recovered, the interest can not be afterwards claimed in a separate suit. 2 Martin's R. 83.

Interest on interest can not be allowed. 5 Louisiana R. 33.

Interest can not be allowed on an unliquidated claim, and a claim is unliquidated when no act of one of the parties alone can render it certain. 5 Martin's R. 6; 1 Martin's New Series, 130; ib. 715, 10; 7 Louisiana R. 599, 134.

A parol agreement to pay conventional interest is not void; parol proof can not be offered to prove such a convention; but if a party, when interrogated, confess that he did make such a convention, it will bind him. 6 Martin's R. 279.

Interest must be allowed on bills of exchange and promissory notes from the date of protest. 6 Martin's New Series, 572.

All debts now bear interest from maturity. Acts of 1852, p. 95.

Banks can not in any case take more interest than at the rate fixed by thei charters. Where the bank-charter fixes the rate of interest at nine per cent., and ten is agreed upon, it will be reduced to the rate fixed by the charter. 8 Louisiana R. 261.

XXV. MICHIGAN.

I. Interest. The legal rate of interest in Michigan is seven per cent. But it is lawful for parties to stipulate in writing for any sum not exceed ing ten per cent.

II. Penalty for Violation of the Usury Laws.-Parties suing upon contracts reserving over ten per cent. interest, may recover judgment for the principal and legal rate of interest. There is no provision for recovering back illegal interest paid, and no penalty for receiving it. Bonafide holders of usurious negotiable paper taken before maturity, without ⚫ notice of usury, may recover the full amount of its face.

III. Damages on Bills.-Damages on bills drawn or negotiated in Michigan and payable elsewhere and protested are as follows:

1. If payable out of the United States, 5 per cent.

2. If payable in Wisconsin, Illinois, Indiana, Ohio, Pennsylvania, or New York, 3 per cent.

3. If payable in Missouri, Kentucky, New England, New Jersey, Delaware, Maryland, Virginia, or District of Columbia, 5 per cent. 4. If payable in any other State or Territory, 10 per cent.

IV. Sight Bills-Grace is allowed on all paper not payable on demand.

Decisions.

The following instrument is not a promissory note:

[$60.]

PLYMOUTH, July 11, 1841. "Two years from date, for value received, we, or either of us, promise to pay E. W., or bearer, sixty dollars with use. Said W. agrees that if fifty dollars be paid on the 1st day of January, 1843, it shall cancel this note." Signed by the makers. Froleck et al. vs. Norton et al., 2 Mich. Rep. (Gibbs).

The law of the place where a promissory note is made payable, determines the time and mode of presentment and of proceedings upon non-payment, but notice to the indorser must be according to the law of the place where the indorsement was made. Snow vs. Perkins, 2 Mich. Rep. (Gibbs), p. 238.

When the law of a State in which a promissory note is made payable, authorizes its protest for non-payment, notice to the indorser residing in another State in which the indorsement was made, that it has been protested for non-payment and that the holder looks to him for payment, is a sufficient notice of presentment and non-payment to charge him as indorser. Snow vs. Perkins. Ibid.

The case of Platt vs. Drake (1 Doug. Mich. Rep.), noticed and commented upon. A mistake in describing a promissory note in a notice of protest, as in amount, etc., does not necessarily vitiate the notice; the question in such case being whether or no the indorser was misled by the mistake. Ibid.

The object of a notice of protest of a promissory note is to inform the indorser of the non-payment of it by the maker, and that the indorser is liable for the payment of it; and if the notice accomplishes this object it is sufficient, although it misdescribe the note in some particulars. Ibid.

A draft made payable to the bearer, no payee being named therein, is, neverthe less, an order for money in the meaning of the Revised Statutes of Michigan. People vs. Brigham, 2 Mich. Rep.