INTEREST AND USURY. 1879

were so lent or advanced and the plaintiff shall be entitled to recover the
sum of money or the value of the goods and chattels actually lent or ad-
vanced with legal interest from the time the same was so lent or advanced.

Plea of usury which sets up a loan is good; contra if it sets up a sale. Meaning
of the term " discounted." Plea open to criticism as to form, but good under this
section; demurrer should have been overruled. Murphy v. Stubblefield, 133 Md. 27.

The borrower may recover usurious interest in an action for money had and re-
ceived. Provisions in various state constitutions affecting usury, set out. Scott v.
Leary, 34 Md. 398. And see Bandel v. Isaac, 13 Md. 222.

Though a borrower omits to make defense of usury at law he may, under proper
circumstances, be entitled to relief in equity. Hitch v. Fenby, 6 Md. 218.

Usury must be pleaded in accordance with this section. McKim v. White Hall
Co., 2 Md. Ch. 510.

For the application of this section to equity proceedings instituted by the bor-
rower, see Neurath v. Hecht, 62 Md. 224.

As to how usury should be set up in equity, see Chambers v. Chalmers, 4 G. & J.
420. As to the denial of usury in an answer, see art. 16, sec. 172.

See notes to sec. 4.

An. Code, sec. 6. 1904, sec. 6. 1888, sec. 6. 1876, ch. 358. 1912, ch. 835.

6. Nothing in the preceding section shall be so construed as to make
usury a cause of action in any case where the bond, bill obligatory, promis-
sory note, bill of exchange or other evidence of indebtedness has been
redeemed or settled for by the obligor or obligors in money or other valuable
consideration, except that usury shall be a cause of action in all cases
where the redemption or settlement above mentioned is secured by or
connected with a renewal in whole or in part of the original indebtedness,
provided that such original indebtedness shall not have exceeded the sum
of $500.1

This section is constitutional. Its purpose and intent. A mortgage transaction is
" redeemed or settled for," where the money is paid and a release given, although
release is never recorded. Lovett v. Calvert, etc., Co., 106 Md. 138; Second German
American Bldg. Assn. v. Newman, 50 Md. 65.

This section contemplates a bona fide and not a sham payment. Where an old
mortgage is released, but a new one is made to secure balance due on old mortgage,
the transaction is not settled. Border State, etc., Assn. v. Hilleary, 68 Md. 54. See
also Border State, etc., Assn. v. Hayes, 61 Md. 599.

This section could not constitutionally be construed retroactively, and hence had
no application to case pending when act of 1876, ch. 358, was approved. Williar v.
Baltimore, etc., Loan Assn., 45 Md. 555.

Prior to this section the law was to the contrary. Border State, etc., Assn. v. Hayes,
61 Md. 600; New York Security Co. v. Davis, 96 Md. 87.

Cited but not construed in Stewart v. Workingmen's Bldg. Assn., 106 Md. 679;
Dickey v. Permanent Land Co., 63 Md. 175; Woods v. Matchett, 47 Md. 395.

1 For a case dealing with sec. 7 of art. 49 of An. Code, 1912 (repealed by act, 1918,
ch. 88), see State v. King, 124 Md. 497.