INTEREST AND USURY 2195

This section does not require that plea state details of renewal notes actually sued
on in addition to details of original loans. Penrose v. Canton Natl. Bank, 147 Md. 206.

Plea of usury which sets up a loan is good; contra if it sets up a sale. Meaning of
the term "discounted." Plea open to criticism as to form, but good under this section;
demurrer should have been overruled. Murphy v. Stubblefield, 133 Md. 27.

The borrower may recover usurious interest in an action for money had and received.
Provisions in various state constitutions affecting usury, set out. Scott v. Leary, 34 Md.
398. And see Bandel v. Isaac, 13 Md. 222.

Though a borrower omits to make defense of usury at law he may, under proper cir-
cumstances, be entitled to relief in equity. Hitch v. Fenby, 6 Md. 218.

Usury must be pleaded in accordance with this section. McKim v. White Hall Co.,
2 Md. Ch. 510.

For the application of this section to equity proceedings instituted by the borrower,
see Neurath v. Hecht, 62 Md. 224.

As to how usury should be set up in equity, see Chambers v. Chalmers, 4 G. & J. 420.
As to the denial of usury in an answer, see art. 16, sec. 178.

See notes to sec. 4.

See notes to sec. 6 and to art. 23, sec. 129.

An. Code, 1924, sec. 6. 1912, sec. 6. 1904, sec. 6. 1888. sec. 6. 1876, ch. 358. 1912, ch. 835.

6. Nothing in the preceding section shall be so construed as to make
usury a cause of action in any case where the bond, bill obligatory, promis-
sory note, bill of exchange or other evidence of indebtedness has been re-
deemed or settled for by the obligor or obligors in money or other valuable
consideration, except that usury shall be a cause of action in all cases where
the redemption or settlement above mentioned is secured by or connected
with a renewal in whole or in part of the original indebtedness, provided
that such original indebtedness shall not have exceeded the sum of $500. ¹

Quaere whether consideration of promised amount of usury was part of "original
indebtedness." See notes to art. 23, sec. 129. Carozza v. Federal Finance Co., 149 Md.
243. Glass v. Bldg. & Loan Asso., 156 Md. 26.

This section is constitutional. Its purpose and intent. A mortgage transaction is
"redeemed or settled for," where the money is paid and a release given, although
release is never recorded. Lovett v. Calvert, etc., Co., 106 Md. 138; Second German
American Bldg. Assn. v. Newman, 50 Md. 65.

This section contemplates a bona fide and not a sham payment. Where an old
mortgage is released, but a new one is made to secure balance due on old mortgage,
the transaction is not settled. Border State, etc., Assn. v. Hilleary, 68 Md. 54. See
also Border State, etc., Assn. v. Hayes, 61 Md. 599.

This section could not constitutionally be construed retroactively, and hence had
no application to case pending when act of 1876, ch. 358, was approved. Williar v.
Baltimore, etc., Loan Assn., 45 Md. 555.

Prior to this section the law was to the contrary. Border State, etc., Assn. v. Hayes,
61 Md. 600; New. York Security Co. v. Davis, 96 Md. 87.

Cited but not construed in Stewart v. Workingmen's Bldg. Assn., 106 Md. 679;
Dickey v. Permanent Land Co., 63 Md. 175; Woods v. Matchett, 47 Md. 395.

¹ For a case dealing with sec. 7 of art. 49 of An. Code, 1912 (repealed by act, 1918,
ch. 88), see State v. King, 124 Md. 497.