1 Cl. Ch. 453 | New York Court of Chancery | 1841
The nature of the transaction between these parties is not difficult to be comprehended or understood. Stow, the defendant who litigates this suit, was fixed as endorser upon a note held by Talcott. The complainant held a note of the same amount against Talcott, with which Stow had no connexion; but if Stow could procure this note of the complainant it would enable him to pay Talcott the note which he held against Stow as endorser, and Talcott was willing thus to liquidate his own debt and give up the note which he held. Stow had not the money to meet his endorsement held by Talcott, but if he could procure the note held by the complainant, it would be as valuable as so much money to him. He made the negotiation for such purpose, and purchased this note of the complainant by the transfer of this mortgage and other securities for a larger amount, and not then-due, with a guaranty of the collection.
In substance and in effect the whole transaction between Stow and the complainant, as presented by the answer, amounts to this : that Stow sold to the complainant, with guaranty, certain choses in action to the amount of ¿4,000 for $3,000 in cash. The question then presented would be, is Stow liable upon this guaranty to.the complainant, or is the guaranty void for usury. The defendant, it is to be observed, does not attempt to impeach the assignment, so far as it affects the transfer of the paper, but only to impeach his own covenant, so far as his personal liability thereon is concerned.