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![handle is hein.slavery/ussccases0073 and id is 1 raw text is: CASES IN TffE SUPREME COURT
1823.
.Fleckner
.7. [PROMIBSOT~r NOTE. USURY. LOCAL LAW.]
U. S. Bauk.
F ECKNER, Plaintif in Error, v. The PRESIDENT,
DIRECTORS, AND COMPANY OF THE BANK OF THE
UNITED STATES, Defendants in Error.
The Act of the loth of April, 1816, c. 44. incorporating the Bank
of the United States, does not, by the 9th rule of the fundamental
articles, prohibit the Bank from discounting promissory notes, or
receiving a transfer of notes in paymentof a debt due the Bank.
The Bank of the U. S., and every other Bank, not restrained by
its charter, and also private bankers, on discounting notes and bills,
have a right to deduct the legal interest from the amount of the
note or bill, at the time it is discounted.
The Bank of the U. S. is not restrained, by tha 9th rule of the fun-
damental articles of its charter, from thus deducting interest, at
the rate of 6 per cent., on notes or bills discounted by it.
Banks, and other commercial corporations, may bind themselves by
the acts of their authorized officers and agents, without t*B corpo-
rate seal.
The negotiability of a promissory note, payable to order, is not
restrained by the circumstance of, its being given for the purchase
of real property in Louisiana, and the notary, before whom the
contract of sale is executed, writing upon it the words stn vare-
tur, according to the laws and usages of that State, and other
countries governed by.the Civil law.
The statutes of usury of England, and of the States of the Union,
expressly provide, that usurious contracts shall be utterly void; but,
without such a provision, ;hey are not void as against parties who
are strangers to the usury.
The statute incorporating the Bank of the U. S. does not avoid se-
curities on which usurious interest may have been taken, and the
usury cannot be set up as a defence to a note on which it is taken.
It is merely a violation of the charter, for which a remedy may be
applied by the Government.
ERROR to the District Court for the District
of Louisiana. This was a suit brought by the](ViewImageLocal?handle=hein.slavery/ussccases0073&div=1&collection=&method=preview&ext=.png&size=3)