Farmers' and Mechanics' National Bank v. Dearing

ERROR to the Court of Appeals of the State of New York.

The facts are stated in the opinion of the court.

Mr. E. G. Spaulding for the plaintiff in error.

The real question presented in this case is, whether the descount of a note by a national bank,-organized under the act of Congress, approved June 3, 1864,-at a greater rate of interest than allowed by the statute of the State where such bank is located, renders it liable to the penalty for usury provided by the State statute.

The act of June 3, 1864, supersedes the State laws imposing penalties for usury in so far as they are applicable to national banks. Davis, Receiver, &c. v. Randall, 115 Mass. 547; Central National Bank v. Pratt, id. 539; National Bank of Erie v. Brown, 72 Penn. 209; Wiley v. Starbuck, 44 Ind. 298; Tiffany v. Missouri State Bank, 18 Wall. 409; Citizens' National Bank of Piqua v. Leming, 8 Int. Rev. Record, 132; First National Bank of Columbus v. Gurlinghouse, 22 Ohio St. 492.

''Mr. Thad. C. Davis'' for the defendant in error.

No privilege of immunity from the usury laws of the State is conferred upon the national banks by the act of Congress of 1864; and a contract for a loan made in the State of New York with one of these organizations, by which it reserves a greater rate of interest than seven per cent, is void. First National Bank of Whitehall v. Lamb, 50 N. Y. 95.

MR. JUSTICE SWAYNE delivered the opinion of the court.