Westlaw Headnote of the Day – December 30, 2010

December 30, 2010

West's Key 398 Usury
West's Key 398I Usurious Contracts and Transactions
West's Key 398I(A) Nature and Validity
West's Key 398k16 k. Nature and Subject-Matter of Transaction in General.

Purpose of the law of usury is to protect the necessitous borrower from extortion and in the accomplishment of this purpose a court must look squarely at the real nature of the transaction, thus avoiding, so far as lies within its power, the betrayal of justice by the cloak of words, the contrivances of form, or the paper tigers of the crafty.
Wilcox v. Moore, 93 N.W.2d 288 (Mich. 1958)