Page:Federal Reporter, 1st Series, Volume 7.djvu/756

 744- FEDERAL REPORTER. �the "principal money." The.statute cornes to his relief by giving him a right to recover against the usurer the full amount of the coflsideration paid by him for such contract, less the amount of the principal money. It is a wholly dif- fei-ent case where the debtor himself gives to the innocent assignee, who pays full value and takes no usury, a new and substituted obligation, especially where such obligation is founded upon some new and sufficient consideration. In this case the assignee would have a sufficient remedy against the debtor upon the new contract by the principle of the com- mon law to which I have adverted, and therefore the provis- ion of the statute would be inapplicable to his case and unnecessary to his protection. �As to the words of the section relied upon by counsel tq support the construction that "no person shall directly or indirectly receive in money, goods, or things in action, or in any other manner, any greater sum or value for the loan of money" than 10 per cent., they are sufficiently answered by the fact that the innocent assignee does not receive more than 10 per cent, on the sum by him advanced. If he doea receive more his new contract in its turn becomes usurious, and subject to the penalties of the statute. It is my opinion that it was not the purpose of the legislature to make our statute of usury apply at all to negotiable bills and notes in the hands of the honajide holder. It would certainlybe a most serions obstruction to the free circulation of commer- cial paper to subject it to the law of usury. Can it be that our legislature intended that every one in money transactions before receiving a bill or note under-due, should stop to inquire whether or not it bas upon it the taint of usury ? I think not. It bas long been the settled law that where a statute by its terms makes a note or bill absolutely void, the instrument is invalid in the hands of a lona Jide holder for value. But where a statute declares a contract illegal, but only voidable, a negotiable note or bill founded upon such voidable contract is good in the hands of a honajide holder. This doctrine has been applied by the courts to statutes of usury as well as other penal statutes. Now, our statute doea ��� �