Page:Federal Reporter, 1st Series, Volume 7.djvu/171

 iarmers' & mbchanios' bank i7. hoagland. 159 �Fabmebs' & Mechanics' Bank op Mebcbb v. Hoagland �{Circuit Court, W. B. Pmmylvanid. May lO, 1881.) �1. National Baisik»— Usury— 8et-0*f �Interest in excess of the legal rate, recelved by a national bank, although taken in the renewal of a series of notes, cannot be applled by way of set-oS or payment in a suit upon the last of the series. ' �2. Same— Sakb. �In sucb case, however, the bank caiinot recover the illegal interest» although Buch interest has been flnally incorporated in notes beari^g legal rates. �S. Sake— Samb., �Neither can the bank recover any interest upon such renewal notes �from the date the interest has been reduced to the legal rate.— [ED. �Demurrer. . W. W. Shafer, for plaintiff. �Samuel H. Miller, for defendant. �AcHESON, D. J. This is ^ suit to recover the amount of two promissory notes, payable to the plaintiflf or orde^'OO days after date, — one dated July 24, 1880, for $3,618; the other dated August 25, 1880, for $3,740.50. The defendant is one of the makers, and, by a written agreement indorsed thereon, is the individual guarantor of each of the, notes. The declaration is upon the guaranty, with the common counts added. The case came before the court, and was argued upon a demurrer to the defendant's plea, but the parties have filed a written stipulation that the court shall enter a final judgment conformably to the disposition which may be made of the demurrer. �The facts, as disclosed by the record, are as follows: The notes in suit are respectively the last renewals of two series of notes, the originals of which bore date October 27, 1875, were each for $3,000, one at 60 and one at 90 days, and were discounted by the plaintiff, a national bank, at the rate of 10 per centum, which was then paid to the bank. Those notes were each renewed 19 times,at intervais of 90 days, the parties tp the several notes being in all instances the same, The ��� �