141 Ala. 621 | Ala. | 1904
When this cau-r was here on a former appeal, 129 Ala. 562, being then styled as the Southern Home Building & Loan Association v. Riddle, the charge of usury in the loan by the Association to Sallie B. Allen, which the mortgage in question was executed by Sallie B. and James B. Allen to secure, was was not denied, the contention by counsel for appellant being that the question of usury was immaterial under the authorities of Loucheim v. First National Bank, 98 Ala. 521; Harris v. Russell, 93 Ala. 59, and Howell v. Carden, 99 Ala. 100, but it was then held that the principle stated in these cases were not applicable to the case at bar. The decree of the chancellor having been reversed for other reasons there stated; after remandment of the cause, the. Association amended its answer by de
is usurious. — Farmers Building & Loan Association v. Kent, 131 Ala. 246; Pioneer Savings & Loan Association v. Nonnemacher, 127 Ala. 521; Hays v. Southern Home Building & Loan Association, 124 Ala. 663; Bedford v. Eastern Building & Loan Association, 181 U. S. 227. It was shown by the duly accredited reports of the de cisions of the supreme court of Georgia, which were introduced in evidence, that the contract before us, under the laws of that State was not an usurious one. There is no pretense here, that the contract was made to- be performed in another State as a shift or device to avoid the usury laws of this state, on the contrary the contention was, and is, that the contract is an Alabama contract, and the chancellor so held, but we think, under the authorities cited above, he was in error in so holding.
The remaining question is, whether it was shown as charged in the bill that the Association had notice of the fraudulent intent of James B. Allen in procuring the conveyance of the land to be made to his wife, which was afterwards mortgaged by her to the Association, he joining with his said wife in the mortgage.
The rule is, that where the payment of a valuable consideration is shown, the burden is cast upon the complaining creditor to prove the existence of a fraudulent intent, and that such intent was known to the grantee of the conveyance assailed. — Hodge v. Coleman, 76 Ala. 103; Shealey v. Edwards, 75 Ala. 411; Lipscomb v. McClellan, 72 Ala. 151.
We are of the same opinion now, that we entertained on the former appeal as to the character of the transaction in which the conveyance of the land was made to Sallie B. Allen, that is to say, that the evidence sufficiently warrants the conclusion, that at the time of said conveyance James B. Allen was insolvent, and that he furnished the consideration and procured the deed to be made to his wife, and this with a fraudulent intent as to his creditors. But there is still another question—
Our conclusion is that the chancellor erred in the decree rendered as to the1 appellant Association, and this decree will be reversed, and a decree here rendered dismissing the bill as to the respondent Association.
Reversed and rendered.