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: 58
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250 FEDERAL REPORTER
make the place of payment the place whose laws should measure the
obligations of the contract.
There are a number of adjudicated cases where the place of the
making of the contract and the source of the consideration-that is,
the source of the money loaned-are not subject to the same uncer-
tainty as in the present case, where the conclusion has been reached
that facts less convincing than those which appear in this case fix as
the law of the contract the law of a state other than that of the mak-
ing and of the consideration.
In Arnold v. Potter, 22 Iowa, at page 198: Notes were dated in
Iowa; made payable in that state; the trustee resided there; the real
estate security was situated there; the payor resided there; notes
were negotiated in Massachusetts and the money there furnished. The
contract was held 'to be governed by the Iowa law.
In the case of Scott v. Fabacher, 176 Fed. 229, 100 C. C. A. 147,
the source of the consideration-that is, the money loaned-was Loui-
siana, and the place of payment was Louisiana, and the negotiations
were carried on partly by mail; but the transaction in which the money
was used, and out of which it was assumed the profits would arise
justifying the payment of usury, and the land given as security for
the payment of the principal and the usurious interest, were in Texas.
Notwithstanding the fact that both the consideration and the place
of performance was a state other than Texas, the essential character
of the transaction as a Texas contract was recognized, and the inter-
est was forfeited under the laws of that state.
Sheldon v. Haxtun, 91 N. Y. 128: The defendant, who resided in
Illinois, collected money due to plaintiff, who resided in New York,
from parties in Illinois, and, instead of remitting the proceeds, sent
through the mail his own note for the amount, specifying a rate of in-
terest usurious in New York. The court says:
"Upon depositing the notes in the mail the transaction was complete.
* * * The defendant became the borrower of the proceeds of the notes
collected by him. The fact that one of the notes was expressly payable in
New York does not distinguish it, in the point of usury, from the others.
This was an incidental circumstance, and does not overthrow the other deci-
sive circumstances which make Illinois the place of contract."
Staples v. Nott, 128 N. Y. 403, 28 N. E. 515, 26 Am. St. Rep. 480:
The note was dated at Washington, made payable at a bank in New
York, bearing interest illegal in New York given to take up another
note dated at Washington and payable there. The arrangement for re-
newal was made in Washington and the note drawn there; it was there
handed to the maker to execute. He took it to his home in New York,
where he signed it. The note was then mailed to plaintiff at Wash-
ington. It was held that the contract evidenced by the note was made
in and governed by the laws of the District of Columbia; that the
affixing of signatures by maker and indorser was simply details in the
performance and execution of the contract, which was consummated
when the note was received by plaintiff; that the naming of a New
York bank as the place of payment did not make it a New York con-
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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/m1/73/: accessed May 29, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.