The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 52
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250 FEDERAL REPORTER
In the latter the facts that the notes were dated in Iowa, made pay-
able there, indorsed there, that the trustee resided there, that the se-
curity was available there alone, and that the payor resided there, con-
trolled, notwithstanding the negotiations were in Massachusetts and
the money there paid.
Lex Loci Solutionis.
An important element in determining the law with reference to
which the contract is made is the place where it is to be performed.
The law is thus broadly stated:
"When a contract is made in one country, and is to be performed in
another, the proper law of the contract may be presumed to be the law of
the country where performance is to take place, the lex loci solutionis." 9
Cyc. 660, and authorities cited.
"Where the contract is to be performed in a place other than that in which it
is made, the parties, according to the general trend of American authorities,
are presumed to adopt the law of the place of performance as the law of
the contract." Hall v. Cordell, 142 U. S. 116, 12 Sup. Ct. 154, 35 L. Ed. 956;
Pritchard v. Norton, 106 U. S. 124, 1 Sup. Ct. 102, 27 L. Ed. 104; Andrews v.
Pond, 13 Pet. 65, 10 L. Ed. 61; Davidson v. Browning, 73 W. Va. 276, 80 S. E.
363, L. R. A. 1915C, 976.
With reference to bills and notes it is said:
"Where a bill or note is executed in one state and made payable in an-
other, the general rule is that it is governed, as to its nature, validity, in-
terpretation, and effect, by the law of the state or country in which it is pay-
able." 8 Corpus Juris, p. 92, 153; Wiseman v. Chiapella, 23 How. 368, 16
L. Ed. 466; In re Quality Shop, 205 Fed. 266, 125 C. C. A. 403; Dickinson v.
Edwards, 77 N. Y. 573, 33 Am. Rep. 671; Tenant v. Tenant, 110 Pa. 478, 1
Atl. 532; Mayer v. Roche, 77 N. J. Law, 681, 75 At. 235, 26 L. R. A. (N. S.)
763; Bigelow v. Burnham, 83 Iowa, 120, 49 N. W. 104, 32 Am. St. Rep. 294.
The authorities cited sustain the propositions which have been made.
It is to be noted, however, that the propositions as made carry the
inference of exceptions and limitations. The cases in which the va-
lidity of the note has been determined by the law of a place other than
the place of payment establish that while the place of payment is an
important element in determining the law to which the contract must
be referable, it is, in no sense, a conclusive element.
Law of the Place Where the Land Mortgaged to Secure the Debt is
The general proposition is that usury inheres in the loan and not
in the security given; but since the intent of the parties is an element
in determining to what law the contract is referable, and since the situs
of the land being necessarily the place of the remedy, the law of the
forum must be taken into consideration; and, since the security is an
important part of the contract of loan, the situs of real estate mortgaged
to secure the debt is an important element to be considered, in con-
nection with others, in determining the law with reference to which the
contract should be held to have been made. 39 Cyc. 905; Bedford v.
Bldg. Ass'n, 181 U. S. 227, 21 Sup. Ct. 597, 45 L. Ed. 834; Commer-
cial Bank v. Auze, 74 Miss. 609, 21 South. 754; Manhattan Life Ins.
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The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/67/: accessed March 30, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.