Page:Federal Reporter, 1st Series, Volume 2.djvu/122

 inSSOtJKI VALIiBT LIPB mS. 00. ». KITTLB. 115 �and independent honafide transactions between the parties — one a loan of money at a lawful rate of interest, and the other the taking by defendant Eobert Kittle of a policy of insurance upon his lif e f rom the plaintiff ? Or were the two so inter- mingled as to constitute only one transaction, one resuit of which was that plaintiff actually received or contracted to receive more than 12 per cent, per annum interest as a con- sideration for the use of the money loaned ? �The evidence, as it appears in the depositions, might leave us in serions doubt as to the true answer to be given to these questions, but the matter is rendered reasonably clear by ref- erence to the mortgage sued on, which must be accepted as an authoritative statement of the contract as understood by the parties themselves, and which provides as follows : "And the parties of the first part hereby agree, in consideration of the aforesaid loan, to take out and keep in force during the continuance of said loan a policy of life insurance in the Mis- souri Life Insurance Company aforesaid, upon his own life or the life of some other person, and upon which he hereby agrees to pay or cause to be paid to said company the annual premium thereon, and not less than $310 per annum. And it is further agreed in consideration of said loan that ail renewals thereof, or extensions of time of payment thereof, are upon the express condition of the payments upon said life insurance policy being made when due ; * » * that any negleot or refusai so to do shall cause the whole amount of said loan to become immediately due and payable, any agreement of renewal or extension of payment to the contrary notwithstanding. " �This language is explicit, and from it we learn that the two transactions were, in some respects at least, blended into one. The insurance was taken in consideration of the loan. It was not a clause inserted in pursuance of a policy to loan only to policy-holders, for it stipulates that the policy to be taken maybe upon the life of the borrower "or the life of some other person." �It was the profit to be derived from the transaction of in- ����