THE ONEY- LENDERS ACT, I goo. haythorjnh reed, m.a 12)00 ''''''"''"■ WATKRLOVV BROS. 8i LAYTON. LTD. DEPARTMENT OF INSURANCL Parliament BuildingSi TORONTO, CANADA. MONEY-LENDli^. AT WORK. Some strong remarks w-erc made by Jud^e S'myly in a case at Shoreditcni Covuity Court where a manlhad been summoned for a del|t of tlircepence due to a mrjn«3'-lei|der, tbe '-court , costs ancwjuiiting. to If. 6d'. Judge Smyly. irt refusing to help th^isioney- : lender, sAid if t'kw^.gort ofthingHvere allowed, these courts WotHd*^(tecom'3 the laughiilg-st6«k of ihe •waijpNo^ another cas^ if-'^an wns su«d for 6i. and Is. 6d.ct).s*-sj^!»nd ajg'ain the'"likpney- lender wa* ,noHV5uifti$i«,.^t G-riin-sby County Cp^rt (a^-fis.ber'^ian was sued for £3, g(?k which he bad agreed to pay £2 'in.v0Test for three weeks, or 1,000 per cent. The interest w-as re- duced to 5 par cent. s. UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY DEPARTMENT OF INSURANCE Parliament Buildings. ON THE LAW KEIiATINCi TO MONEY-LENDERS AM> THK MONEY-LENDERS ACT, 1900. FULLY ANNOTATED BY SECTIONS. BY HAYTHORNE REED, M.A.. OF TlIK INXKK TKMPLE, BARRISTER-AT-LAW. LONDON : WATERLOW BROS. & LAYTON, LIMITED, 24, BIUCHIN LANE, E.G. 1900. T \C\oo PRINTED BY AVATERLOW BBOS, & LAYTOX, LIMITED, 24 & 25, BiKCHiN Lane, London, E.C, 9^H >3 I J PREFACE. The object of the following pages is, if possible, to afford assistance to Practitioners and others in interpreting what is admittedly not an easy Statute, and one which more intimately affects large sections of the public than the majority of Statutes th;it are passed. The resrulations that have been made umli'r Section 3 by the Commissioners of Inland Revenue with the approval of the Treasury as to Registration of Money-lenders will be found in the Appendix. In the Index of Cases will be found a rcfer^'iiro to contemporaneous reports. HAYTIIORXE REKD. 7, Fig Tree Court, The Tfmple, Odoher, IDOO. CONTENTS. TAUK Taulk uF Cases ... ... ... ... ■ 7 iNrKOUDCriON ... ... . -^ Thk MoNEY-LENi-EKs Act, 1!>00 I'J ►Section 1. Rc-opfiiing uf tnmsactiiMis of money-lender... ... ... li) 2. Registrations of money-leuder.s . (t2 8. Regulations as to Registration .. 71 1". Ponaltie.s for false statement and representations ... ... 71- r>. Ann-ndment of 55 & 5(5 Vict. c. •i, s. 2, as to presumption of knowledge of infancy . 75 6. Definition of money-lender .. 77 7. Commencement and short title ... ".•<) Ai'i'i;.Ni>i.\. — Statute, Regulations and Forms relat- ing to registrations . ... !•! Tlir McM.ey-lendiTs Act. 1900 '•>:} Regulations as to Registration made under sections '2 S.' '^ ... ... 9!' Ordeis as to Fees ... ... ... l''-^ Registration Forms ... ... ... 105 Regulations made pui'suant to section (\ (e) 108 I.nhex ... . ... IK? CASES CITED. ALDBOitoroii (Knr\ of) Ayleaford (Karl of) r. 5H) ; -'S L.T. 541 ; r. Trv«', 7 CI. & Fin. 43G; Wost 221 .. .•{4 MorVis, 8 Ch. App. 484; 42 L.J. Ch. 21 W.K. 424 36, 40, 41 Raker .•. Monk, 4 De G.J. A S. 388; 10 Jur. (N.S.) 691 ... 37 Barker c. Vaimonunor, 1 Bro. Ch. 149... ... ... ... •"»•) Barnaniiston v. Lingwood, 2 .\tk. 133 ... ... 33 Barrett r. Hartley, L.B. 2, E(|. 789 37, 41 Bennet )•. Bcnnet, 4;} L.T. (N.S.) at p. 24Gn 13 Bergman r. Macniillan, 17 Ch. 1).423 ... ... ... ... oH Beynon ,•. Cook, loCh. App. 389; 32 L.T. 353 ; 24W.R.531 33,36,43 Bishop V. Consolidated Credit Corporation, 8(5 L.T.Jl. 426 ... 2H Boothbv V. Boothhv, 1 Mac. & (i. 6()4; 2 H. & Tw. 214 ... 49 Bowes V. Heaps, 3"v. & B. 117 ; 13 R.H. 162 32 Bromlev v. Smith, 26 Beav. 64rl. ; 29 L.J. Ch. 18; 5 Jur. (N.S.) 833; 7 W.R. 557 34,45 CiiESTKRKiKMi (Earl) r. Janssen, 2 Ves. 125; 1 Atk. 301; IWils. 2H6 33,34,39,46 Clark J.'. Malpas, 4 Dc G., F. & J. 401 3H Cochrane 1-. Dixon, 3 T.L.R. 717 27 Croft V. Graham, 2 De G.J. & S. 155; 9 L.T. 589 ; 9 Jur. (N.S.), 1,U32 43 Davis c. Duke of Marlborough, 2 Swaus. 108 33,34 Emmet v. Tottenhajn, 12 L.T. (N.S.), 838 ; 14 W.R. 3 ... 36 Evans r. Llewellin, 1 Cox Ca. E(|. 333 ... ... ... ... 37 Ford V. Olden. L.R. 3 Eq. 461 37 Fox V. Wright, 6 Madd. 121 61 Fry 1'. Lane, 40 Ch. D. 312; 58 L.J., Ch. 113; 60 L.T. 12; 37 W.R. 135 34, 38, 43. U Gordon v. Street (1899), 2 Q.B. 641 Gowland i-. Do Faria, 17 Ves. jun. 20; 11 U.K. 9 H- Graham i'. Johnson, L.i{. 8, Eq. 36 Gwynne v. Heaton, 1 Bro., C.C. 1 Helsham, r. Barnott, 21 W.R. 3(H> Hickea '•. Cooke, 4 Dow. 16 Hickman r. Haynes, L.R. 10 C.P. 598 Howley >\ Cook, Ir. R., 8 E«i. 571 Jamks v. Kerr, L.R. 40 Ch. D. 449; 58 L.J. Ch. 355 ; (K) L.T 212; 37 W.R. 279; 53 J. P. 62S 13 4!» 58 33 38 37 i:> 3S 43 Cases Cited. PAGE Kevans r. Joyce, 1896, Ir. R. vol. i. 442 37,43,45 MiDDLETOx r. Brown, 47 L.J. Ch. 411 40 Miller r. Cook, L.R. 10 Eq. 641; 40 L.J. Ch. 11 ; 22 L.T. 740 ; 18 W.R. 1,061 43 Xevill v. Snelliug, L.R. 15 Ch. D. 679; 49 L.J. Ch. 777; 43 L.T. (N.S.) 244 41 Xesbitt r. Berridge, 1 X.R. 345 44 Xe^\'fo audi and (Government of) v. Xewfoundland Railway Co., 13 App. Ca. 199 ; 57 L.J., P.C. 35 ; 58 L.T. 285 ... 59 Xutter f. Holland (1894), 3 Ch. 416 54 Ord r. White, 3 Beav. 357 60 O'Rorke r. Bolingbroke, L.R. 2 App. Ca. 814 ; 26 W.R. 239... 35 FoKTSMOUTH (Mayor of) v. Smith, 13 Q.B.D. 190; 10 App. Ca. 364; 54 L.J., Q.B. 473; 53 L.T. 394; 49 J.P. 676 ... 80 Powers, re, 30 Ch. D. 291 54 Rae ■?;. Joyce, 29 Ir. R. 500 35,43 Rees V. De Bemardy (1896), 2 Ch. 437 ; 65 L.J. Ch. 656 ; 74 L.T. 585 38 R. r'. Harman, 4 Q.B.D. 284 80 Richardson r. Harris, 22 Q.B.D. 268 28 Roxburgh r. Cox, 17 Ch. D. 526 59 Sheil, e« parfe, in 7-e Lonergan, 4 Ch. D. 189 ... . 51 Shelly V. Nash, 3 Madd. 232; 18 R.R. 223 ... . 34 Singer Manufacturing Co. r. Clark, 5 Ex.D. 37 82 Texxaxt V Howatson, 13 App. Ca. 489... ... 87 Tennent r. Tennents, L.R., 2 H.L. (Sc.) 6 39 Tottenham v. Emmet, 12 L.T. (N.S.) 838; 14 W.R. 3; 10 Jur. (X.S.) 1,090 36 Tyler v. Yates, 6 Ch. App. 665; 40 L.J. Ch. 768; 25 L.T. 284; 19 W.R. 909 38 Tynte V. Hodge, 11 L.T. 490 ; 13 W.R. 172 33 Walker v. Jones, L.R., 1 P.C. 50; 35 L.J.P.C. 30 : 14 W.R. 484; 14 L.T. 686; 12 Jur. (N.S.) 381 60, Bl Watson V. Mid-AVales Rlv. Co., L.R., 2 C.P. 593 ; 36 L.J.Q.B. 245; 17 L.T. 94; 15 W.R. 1107 59 Wiltshire, In re, ex parte Eynon (1900), 1 Q.B. 96 ... 29 Wiseman v. Beake, 2 Vern. 121; Freem. C.C. Ill 32 W^ood V. Abbey, 3 Madd. 417 ; 18 R.R. 264 43 Young v. Kitchen, 3 Ex.D. 127 ; 47 L.J., Ex. 579 ; 26 W.R. 403 58 IMKUDLCTION. TiCL busiut'ss of a raoney-lendei- lias always })cen so associated willi raj)acity and liardsliip that it has nowhere, nor at any time, been a popnhir one. We, indeed, now know ironi i)olitic:iI etMinomy tliat interest is the equival<'nt for two tilings : a charge fi»r the use of the money lent, and also a charge for the risk of losing it ; and this seems so cjbvious, that it is hard for us to realize tlie feelings of most ancient nations upon the subject. Aristotle denounced altogether the lending „£ ">e y>^"w of " ( I rook and money at interest to anyone, arguing that because Koman monilists. money is barren and cannot breed money, therefore the lending of money at interest was most unnatural and the worst source of wealth'"'; and Cicero men- tions that Cato, being asked what he thought of usury, ''' made no other answer to the question than by asking the person who spoke to him what he tliought of murder. Miihometans are not allowed by the Koran to U-nd money at interest'*''; and in most, if not all («) Pol. i., c-h. X. {b) III early daya usury nicniit tlio lending of money at interest. (c) Koran ii. 275 : " Those who devour usury Bhall not " rise again, wave as he ariseth whom Satan hath jiaralysod '' with a touch." 10 Introduction. primitive societies, "vvliere tliere was often com- munity of interests, and where the relation of clan- ship was strung, it was thought wrong or mean to charge any interest for money lent to a relative oi' clansman. Thus, in ancient Rome a Roman citizen misrht not lend at interest to another Roman citizen ; in the middle ages a Christian might not lend at interest to another Christian, and now by his law a Jew may not lend at interest to another Jew. '"* With the decay of the primitive community, however, when men met more and more as strangers, and not as members of the same community, this could not last, and at an early date the lending of money at interest, though regulated, was allowed. Thus Solon in 594 B.C. by drastic measures regulated usury in Athens and interest was limited in Rome by the XII. Tables (about 500 B.C.) to 12 per cent, per annum. Coming to later times and to England usury England in ^g^g absolutely forbidden by a law of Edward the the early "^ ■' middle a^es. Confessor, and this was the rule of the common law ; the Roman Catholic Church also treated the taking of interest as a sin, and for it would correct the sinner for his soul's health. (a) Deut. XXIII., 19, 20.—" Thou shalt not lend upon " usury to thy brother Unto a stranc^er thou " mayest lend upon usury, but unto thy brother thou shall " not lend upon usury that the Lord thy God may bless " thee." The view o Introduction. 11 In tlu- L'liil}' iiiiddlf ni,'t'H, bowi'Vt-r. llu- .lows were allowed to and did openly carry on tlio husi- ni'ss of money-lending. 'I'liis was because the Jews wei'o considered in the same relation to the King as the villein was to his lord ; and as the king rea])ed considerahle advantages from this position, he looked after their interests and granted them si)ecial ]tii\ i- leges; one of these j)rivileges, and the chief one, was the lucrative right of lending money at interest.'"' However, in the year 1290 the Jews in a body were expelled from England. M(mey- lending tlu-n was carried on I)y the Lombards. Christians at first only lending money under some cloak or device, but before long taking interest openly in spite of e;inonical o]iposition. The right of being able to borrow and to lend Tlic usury money at interest became in time so obviously to the public convenience that it was at last reluc- tantly '*' recognised as a necessity and allowed, the rates of interest alone being regulate(l. Thus l)y 87 Hen. VIII., e. 9, legal interest was H.\ed at 10 per cent, per annum, and by 21 Jac. 1, c. 17, was reduced to 8 per cent., by 12 Car. II, c. 13, to (5 per cent., and l)y 1- Aniu', stat. 2, c. K), to ') per cent. (a) See I'ollock & Mixitlaiid's History of Eiifflisli Law, vol. 1, p. 451, niid on the Jews' Exclioquor Court, wht«re the Jews sued, and could bo sued. (b) Some statutes, that fixed tlic mnximuni nniount of intere.-^t allowed, declared in their |)i-i'amtili' that all u.snry was unlawful. J 2 Inttoduction. However, in the latter half of the 18th centuiy, political economy was more studied and under- stood, and in 1787 Bentham wrote his " Defence of tentham's Usury," '"' and showed that not only were laws iGW, against usury for the most part inoperative, being evaded by devices and legal fictions, but that where they -were operative, by putting an artificial price on money, they were positively harmful and checked trade and discouraged industry. But, though the opinion gained ground that money should be borrowed and repaid upon what- ever terms the parties should agree to, and a select Committee of the House of Commons appointed in 1818 to consider the effects of the usury law^s recommended their abolition, it was not until 18o-4- aepeal of the ^j^^^^ ^.j^g iisury laws wei"e repealed b}- 17 and 18 isurj- laws. Vict. c. 90, and that money-lenders were allowed to charge any rate of interest. This same principle was adopted on the Conti- nent about the same time. As early as 1787 Austria allowed parties to fix their own rates of interest, and as late as 1879 Russia did the same. Between these dates practically all Europe, with the excep- tion of France, adopted this principle of freedom of contract, so far, at least, as by abolishing a maximum rate of interest. In England, of course there was still the concurrent relief given by Coui-ts of Equity against harsh and unconscionable bargains. (a) Jeremy Bentham's works, vol. 3, p. 3. Introduction. 13 yut, us will he seen IhUt, equity tliti not Lfive relief merely on aeeount of the ImrKliness of the eontract, when the horrower was t)f i-ipo iitce luid acted fieely with his eyes open '' ; and consequently since the repeal of the usury laws a l)orrower has not been able to get relief merely on account of excessive interest. Though among money-lenders there are many given to fair dealings, yet, on the other hand there are many others given to the most rapacious tyranny known to mankind,'*' and this they are enabled to practise by the ordinaiy circumstances whicli surround a money-lender and his client, namely, possession of money on the one hand, and the urgent want of it (often coupled with the necessity of secrecy) on the other. As therefore may be iuiugiued, this freedom of contract given to money-lenders has often been abused, and it was soon found desirable to curtail (a) In Hennet r. Hcniiet, 43 L.T.N. .S. at P. 2iG», a man in good circumstances, and who conld have liorrowcd money from his solicitor at u low rate of interest, borrowed money from a money-lender at a very high rate, and his executors attempted to set aside the contract. Jesse), M. R., gave judgment for the defendant, and said " Tliere is nothing to '" prevent people from borrowing money at 100 per cent, as " there is no law to prevent peojile from being fools or from " gambling," and if a money-lender is allowed to get 100 per cent, on a good security, a fortiori, he must be allowed to get it on a bad security. (h) See Gordon r. Street (1899), 2 Q.U. G-il as an example. 14 Introduction. it. Thus we find that in most countries there has T(>ndency been a counter movement,'"' and any transaction in present dav "^^'^ich one party was at a disadvantage to the other legislation. f^^j. gomg such reason as his necessitous condition, careless improvidence or inexperience, whereby the other obtained an excessive profit, has been treated as usurious and suppressed, and the usurer has often been treated as a criminal.'*' This counter movement has been especially marked in Germany where the prevalent view is well expressed in the words of Jhering (Zweck im Kechte, i. 138) " Unfettered freedom in commerce " is a license to extortion, a pass for robbers and " pirates to the purses of all who fall into their " hands. Alas, foi- the victim ! One can understand " that the wolves cry out for freedom. If the sheep " join in their cry they only prove that they " are sheep." In England it was the same, and the freedom given by the Act of 1854 was soon curtailed by divers Acts. By the Bills of Sale Acts, and by the Pawn- brokers' Acts, restrictions have been placed on lend- ing money on personalty ; and by the Bankruptcy (a) In some countries this happened very quickly. In (rermany, after having allowed money-lenders to make their own terms for 13 years, from 1867-1880, and in Russia for 1-1 years, from 1879-1893, it was found necessary to again pass laws against usury. (h) See the Journal of the Society of Com;-.arative Legis- ation, New Scries, No. 2, p. 21.5. Introduction. !•'> Act of IbyO, W.\ A .>t Vict. C-. 71, sec. 23, interest above 5 per cent, lui.s been postponed until all tbe other debts proved have been jjaid in full ; and by the Betting and Loans' (Infants) Act, 1892, hb &, 5G Vict. c. 4, sec. 2, it is made a misdemeanour to send circulars to infants (known to be such by tlie sender) inviting them to borrt)\v money. IJut these Acts were found insufficient, and public opinion was so stirred up by the cases of extoi-tion that from time to time came into Court, that a Select Committee of the House of Commons was appointed in 1897 to consider the subject. The Committee reported that the system of money lend- ing by professional money-lenders at high rates of interest was productive of crime, bankruptcy, unfair advantage over other creditoi-s of the borrowei-, extortion from the borrower's family and friends, and other serious injuries to the community.'^*'' Tn 1899 a Bill was introduced into the House of Lords by Lord James of Hereford, which, however, failed to become law, but being reintroduced this year, after important alterations in the House of Commons, became law in its present state as " The " Money-lenders Act, 1900." («) And tho Chairman of the Coniniittoo when introduc- ing the Bill to the House of Commons, said that he liad entered the Committee with tlie helief that there should he free trade in money as in everything else, and that if u man chose to bo a fool it was impossible to save hira from his folly, but he found that instead of representing free trade in money, it fre(|uently represented free trade in rascality and fraud. Parlia- mentary Debate?, 2l8t June, 1000, p. 681. ■16 Introduction. This Act only applies to cases in which money is lent by a professional money-lender, but not to money lent by a private person which contract is not touched by the Act, and the following are its chief provisions : — . . By the first section the Court is ena.bled to relieve against any transaction which is harsh and uncon- scionable, and in which the interest is excessive, and may substitute in its place something reasonable and can set aside securities given for the money advanced. By the second section money-lenders (that is people who make a business of money-lending, and to whom only the Act applies) must register their trade name, and their business addresses, and can be summarily convicted if they carry on business under any other name, or at any other address. By the fourth section money-lenders who by any false statement endeavour to induce another to bor- row money are guilty of a misdemeanour ; and by the fifth section, where an advertisement is sent to an infant, the money-lender has to prove he had reasonable ground for believing the infant to be of full age. Thus as we have seen the law as regards money- lending has passed through four stages — (a) At first it prohibited leiuling money at any interest ; Tntroduciion. 17 (6) Then it proliibitcd Iciuling at interest exceeding a certain maximum ; (r) In the third stage it aUowed a niom-y- h'lider to h-nd at the best interest he could get ; {d) And now it relieves against unconscion- able contracts, and only considers the i-ate of interest as a factor in deter- mining whether the contract is con- scionabl(! or not. A libi-ral construction of the ^loiiey-lenders Act, lOCK), may be expected ; but it renuiins to be seen whether or no it touches ti-ansactions that were never intended to be interfered with, and whether it adequately protects a boiTower without rendering it unduly difficult for him to find a lender. i; mi)m:v-lendeiis act, looo. 6:i & G-A Vict. cai'. 51. All Ad til ainrnil tlie Law ivith respect to Persons carryiiuf oil business a3 Money-liuders. [8th August, 1900.] BE it enacted by the Queen's most E.xcellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliainont assembli'd, and by the authority of the same, as follows : — Re-Opening of transactions of Money-lender. Where proceedings are taken in any court section i. by a money-lender*^' for the recovery of any sn^-secci) money lent after the commencement of this Act/"' or the enforcement of any agreement or security made or taken after the commence- ment of this Act in respect of money lent either before or after the commencement of this Act, *^' and there is evidence wliieli satisfies the court ''^ that the interest charged in respect of the sum actually lent *®^ is excessive,*"' or that (1) p. 22. (2) p. 23. (3) p. 24. (4) p. 26. (5) p. 27. (0) p. 29. II '1 20 the amounts charged for expenses, inquiries, fines, bonus, premium, renewals, or any other charges, are excessive, and that, in either case, the transaction is harsh and unconscionable, ^^^ or is otherwise such that a court of equity would give relief, ^^^ the court may re-open the transaction, ^^^ and take an account between the money-lender and the person sued, and may, notwithstanding any statement or settlement of account ^^°^ or any agreement purporting to close previous dealings and create a new obliga- tion, re-open any account already taken ^"^ between them, and relieve the person sued from payment of any sum in excess of the sum ad- judged by the court to be fairly due in respect of such principal, interest and charges, ^^^^ as the court, having regard to the risk and all the cir- cumstances, may adjudge to be reasonable ; and if any such excess has been paid, or allowed in account, by the debtor, may order the creditor to repay it ; *^^^ and may set aside, either wholly or in part, or revise, or alter, any security given or agreement made in respect of money lent by the money-lender, and if the money-lender has parted with the security may order him to in- demnify the borrower or other person sued. ^^^^ (7) p. 30. (8) p. 31. (9) p. 46. (10) p. 47. (11) p. 47. (12) p. 48. (13) p. 50. (14) p. 50. 21 As nearly every word in the sub-section deserves coDsideration it niiiy l)e convenient to deal in detail with the conditions on which transactions can be re-opened. The title shows the general scope of the Act, which only deals with cases in which money is lent by a professional money-lender — that is by a person who makes a business of money-lending. A private person who lends money is not touched by the Act, whicli is a money-lender's Act, and not a money-lendtn^ Act us is seen by section 7 (1). Sub-section (1) of section I enables the Court to give relief when the money-lender is trying to enforce his agreement ; sub-section (2) applies when the borrower or person liable applies for relief. Before the Court can give relief under either sub- section it must be proved : — (i) that the lender is a money-lender. Section G shows that the expression money-lender includes every person whose business is that of money-lending, or who holds himself out in any way as carrying on that biasiness ; certain persons and bodies as pawn- brokers, or registered friendly societies, or bodies corporate empowered by a special Act to lend money, or bankers, or anyone bond fide carrying on any business not having for its primarj' object the lending of mone}', in the course of which and for the purposes whereof he lends money, are expressly excluded from 22 the definition of money-lender. Of course, if the lender is registered as such under sec. 2 this will in the first instance require no further proof. (li.) That the interest or other charge is excessive. The notes on excessive interest will be found on p. 29. (iii.) that the transaction is harsh and unconscion- able, or inequitable. The notes on " transactions harsh and un- conscionable " and " is otherwise such that a Court of Equity would give relief " will be found on pp. 30 and 31. As we have seen in the introduction, opinions as to the conscionableness or unconscionableness of money-lending contracts have very much differed, it even being thought wrong at one time to lend money at any interest at all. The section thus throws a heavy responsibility on those administering the law ; and on holding a transaction unconscionable, the further task is imposed on them of making a con- tract for the parties by determining what is a reasonable sum to pay under all the circumstances. (1) Where proceedings are taken in any court by a money-lender. By Order 57, rule 12 (R.S.C.), when goods and chattels have been seized in execution by a sheriff, and any claimant alleges that he is entitled, under a Bill of Sale or otherwise, to the goods and chattels by way of security for debt, the Court may order the sale of the whole or a part thereof, and direct 23 the application of the proceeds of the sale in such niainier ami upon siicli terms as may be just. It remains to be seen whether in an interpleader, where a money-lender is the claimant under a Bill of Sale, the Court can exercise its powers under this sub-section of re-opening the transaction, and only allow the money-lender to benefit under his Bill of Sale to a reasonable amount. (2) For the recovery of any money lent after the conimencement of this Act. By section 7 sub-sec. (2) the 1st of November, 1900, is fixed as the commencement of the Act, and for the Court to give relief, the money must be lent, or the agreement in respect (jf the money lent, must be made on or after November 1st, 1900. If, then, a money-lender agreed on October ;Ust, 1900, to lend the next day £100 at GO per cent, per annum, payable quarterly, which he did, and on the first quarter's interest not being paid sued for it, since the agreement to pay interest would be made before the commencement of the Act, the Court possibly would not at this stage grant relief, but would wait to do so until the principal was sued for, since that was lent on November 1st, that is after the commencement of the Act. The above words '' recovery of money lent " probably apply to renewals, made after the com- mencement of the Act, of loans made before; l)ut if not, it seems that the following words would apply. 2-t (3) The enforcement of any agreement or security raade or taken after the commencement of this Act, in respect of money lent either before or after the commencement of this Act. By the previous words the Court can give relief when the money-lender sues for his principal, and by these words, when he seeks to enforce any other part of the agreement as by suing for his interest, and thus inferior courts have conferred on them jurisdiction under this sub-section to re-open the transaction and grant relief when they cannot do so under sub-sec. 2 on the application of the borrower, as will be seen by the note on " any court in which proceedings might be taken," to sub-section 2, p. 54. The above words seem to include the case of a money-lender suing on an account stated between himself and a person to whom he owes money, being the balance due to him in respect of money lent after deducting the debt due from him, not- withstanding that as an account stated gives rise to a new cause of action, he is considered in law as suing on sometliing quite distinct from his agreement to lend money. The above words also include the case of a money-lender proceeding against a surety, and sub-section 2, which is the correlative of this sub- section, expressly applies to a surety or other person liable. A contract may be discharged by such an altera- tion in its terms as substitutes a new contract for the old one, and it is not necessary that the substi- tutcd coiitract shnuM exprfsslv tlis('lr,ir«^»' tlu' t'oniitT one, as its waiver may be iinplied by the iiitruJiictioii of fresh terms. But the new terms must be so incon- sistent with the old as to bhow an intention to disehiir^'e the former contract. A mere postponement of pert'ormance, for the convenience of one of the l)arties, does not discharge the contract. This question has often arisen in contracts for the sale and delivery of <,'oods, where the purchaser requests a post2)onement of delivery, and then refuses to accept the goods at all, alleging that the former contract has been discharged by the alteration of the time of performance, and that a new one has been created, which, however, is unenforceable, not bein^' in writing. But the courts have always recognized "• the distinction between a substitution " of one agreement for another, and a voluntary *' forbearance to deliver at the request of the othei- " party," ("* and has not allowed one party to a contract to discharge himself from his own obliga- tions by inducing the other party to give him time for their performance; and though cases may arise in which there is considerable doubt as to whether the terms of a contract made before the commence- ment of the Act have been so substantially altered by the parties after the commencement of the Act as to discharge the old contract, and to compose a new one to which the Act will apply, yet it seems that where a money-lender who has lent money before the commencement of the Act, on being requested (a) Hickman v. llayncs, L. K. 10 C. V. 5\v paid, the debt " must be already duo." <"> (C) Interest charged ... is excessive. Interest is the equivalent for two things — it is a charge for the use of the money lent and for the risk of losing it. As the rate of interest, therefore, must depend on such variable circumstances as the state of the market and the nature of the security offered, no maximum can be safely laid down above wliich interest is to be deemed excessive ; and it is obvious that what is a fair interest when the borrower is a substantial man, the security good, and the bank rate low, must differ so much from what is a fair interest when the borrower is a man who can give no security, and who has no character to lose, and the bank rate very high, that any fixed scale cannot be a reliable guide. In the Act as originally introduced, instead of " the interest is excessive," the provision was "the interest exceeds the rate of interest mentioned in the schedule," which was, it is worth noticing, in respect of a loan not exceeding 40s., 25 per cent, per annum ; exceeding -lOs. but not exceeding £10, 20 per cent. ; exceeding £10, 15 per cent. ; but it being decided not to have any fixed scale, it was changed to its present form. (a) In re Wiltshire, er parte Eynon, (1900) 1 C^. H. JtG. 80 (7) Harsh and unconscionable. By a literal reading of tlie section, the word " otherwise " that follows would seem to qualify these words, so as to make them mean " is so harsh and unconscionable that a Court of Equity would give relief." ("^ Though this construction cannot be said to make the section nugatory, yet it seems probable that it will not be adopted, and " other- wise " will be probably construed as meaning " on any ground." It is more arguable that though the above read- ing is not to be adopted, yet that " otherwise " at least predicates that the Court, in construing the phrase " harsh and unconscionable," should look at the cases in which Courts of Equity have held a contract inequitable on account of its harshness ; and that though the Court's power is not to be confined to the cases in which equity would give relief, yet the Court is to be guided by such cases, and is to act on similar principles. The Court has discretion to say that though the interest is excessive, still the contract is not harsh and unconscionable. It is not a mere arbitrary deduction that because a high rate of interest is charged, the bargain is harsh and unconscionable. In considering whether the transaction is harsh and unconscionable, the Court will probably take into consideration : — (a) This seems to have been the view of those in the House of Commons who opposed the Bill, and through whom the clause " or is otherwise such that ..." was inserted. ;5l (i) the relatioub in wliicli the parties stand to one another as possession of money on one side and great need of it on the other ; (ii) the conditions of repayment. These have often been very harsh, as where £100 beiny; advanced to a borrower repayable by six monthly instalments of £24 each, a promissory note is taken from the borrower for £144, payable by six monthly instalments of £24 each, with the con- dition that if default is made in payment of any one instalment, the balance owing at the time of default is to become immediately due and payable, by which means, on default being made, interest at a rate never contemplated is recoverable. (iii) the rate of interest charged upon the loan; (iv) the character of the security given or promised. But it is not probable that the discretion of the Court will be guided by one or more fixed con- siderations, and regard will probably be had to the circumstances of each particular case. (8) or is otherwise such that a court of equity would give relief. Equity from the very earliest times has con- sidered that it is not every bargain which distress may induce one man to offer, that amtther is at 32 liberty to accept/"^ and therefore lias not always kept a man to his compact, but has sometimes relieved him from it/*-^ Though it is not possible to state precisely in what cases relief will be given, and in what it will not, yet the principle which has guided Courts of Equity is clear. Relief will be given where the parties do not meet on an equal footing, but under such circumstances as in the particular transaction give one party an unfair advantage over the other, and where that advantage is unconscientiously exercised. Equity has held that certain circumstances raise the presumption that the parties have met on such an unequal footing, that one party has not been able to make a fair contract with the other; and where these circumstances occur, the burden is thrown on the other party of rebutting the presump- tion, by proving that he did not take advantage of the weaker party, that is to say by proving that as a matter of fact the terms were fair and reasonable, having regard to the nature and degree of the risk run. And there are other circumstances, which though they do not of themselves raise this presumption, have greatly influenced the Courts in finding that one (a) Bowes v. Heaps, 3 V. & B. 117 ; Wiseman r. Beake, 2 Vern 121. (b) These contracts are sometimes termed "catching bargains" and sometimes " hard and unconscionable bargains " or " hard bargains." 33 piirty liiis ()l)trtined a Imisli ami uncoiiscit»ii:il)l<' l»ar- gain from tlic otluT, which shouhl not l)i' ciit'on ril. And the following are the chief of these circum- stances : — (i) Tliitt the contract is with an cfpectaiif heir on the credit of his inheritance. This has been the chief class of bargains in which • '(luity has as it was often found that when the estates fell into possession instead of ((() Biirnarilistou v. Lincfwood, 2 Atk. 135 ; Gwyuno r. Heaton, 1 Bro. C.C.I. ; Davis r. Duke of Marlborough. 2 Swauston at j). 139 n. Sir G. Jessel in Beynon v. Cook, 10 Ch. Ajip. at p. 392, said " the " doctrine being that you must not h?nd on extravagant terms to " reversioners or remaindermen vritli a view of getting paid out of " tlie reversion or remainder." In Tynte r. Hodge, II L. T. 490, Wo(jd, V.C., said, " Such transactions being discouraged as tending " to lead the heir to gratify his cnjn-ices ami destroy the family " estate." And Lord ITard^vicke in Chesterfield c Janssen, 2 Ves., 125, said, ' I have not mentioned the reasons drawn from the '■ disconragement of prodigality and jireventing the ruin of families '■ — considerations which have often weighed with the Court." 34 being enjoyed bj the heir or person intended thej were at once divided amongst a set of total strangers. " These," saj's Lord Hardwicke, when speaking of bargains made with heirs in Chesterfield v. Janssen^"' " have been generally mixed cases compounded of all " or several siDecies of frauds, there being sometimes " proof of actual fraud, which is always decisive. " There is always fraud presumed or inferred from " the circumstances or conditions of the parties con- " tracting — weakness on one side, usury on the other, " or extortion, or advantage taken of that weakness. " There has always been an appearance of fraud from " the nature of the bargain, even if there is no proof " of any circumvention, but merely from the intrinsic " unconscionableness of the bargain." Indeed a special protection was given to expectant heirs by the doctrine that on a transaction being impugned by an expectant heir, mere inadequacy of price was a sufficient ground by itself for his obtain- ing relief, and that the onus lay on the other party to show he had given a fair price for what he had purchased.**) In Shelly v. Nash*'') Sir John Leach said : " At " law and equity also, generally speaking, a man who " has a power of disposition over his property, " whether he sells to relieve his necessities or to (a) Supra. (6) See cases collected in Davis r. Dnke of Marlborough, 2 Swauston at p. 139 d ; Earl of Aldborouph v. Trye, 7 CI. and Fin. at p. 456 ; and Bromley r. Smith, 26 Beavcn 644, where it was held that rul(> a])plied, even if the heir was of mature ape and understood the transaction, and that the heir need not show he was in pecuniary distress. See also Fry r. Lane, 40 C. D., at p. 320. (c) 3 Madd. 232, at p. 235. 36 *' provide for the eouveuiouce of his family, caimot *• avoid his contract upon the mere jj^round of in- •• adt'(|uacy of price. A court (»f equity, however, " will relieve expectant heirs and reversioners from *' disadvantat'eous barn of the situation of such persons. ** But in more modern times it has been considered " not only that those who were dealing for tlieir •' expectancies but those who were dealing for their " vested remainders also were so exposed to imposi- " tion and hard terms, and so much in the power of " those with whom they contracted, that it was a fit " rule of policy to impose upon all who dealt with " expectant heirs and reversioners the onus of " proviny^ they had paid a fair price, and otherwise -' to undo their bargains and compel a re-conveyance " of the property purchased." The Sales of Reversions Act, 31 Vict. c. 4, how- ever, abolished this privilege of expectant heirs by enacting that no purchase, &c., made horui Jide and without fraud or unfair dealing, of any reversionary interest should hereafter be opened or set aside merely on the ground of under value. This has, however, in no way atfected the doctrine as to dealings with expectant heii*s. Thus anyone who deals with an expectant heir on the credit of his expectation has still to support the onus of showing that the bargain was fair and con- scionable.*"^ (a) Riio v. Joyce, -'!i Ir. I{ , r>00 ; O'lfork.- r. U(.lin},'broke, L. R., 2 A])])., Ca. H\\. c2 able con tracts m The phrase " expectant heh-s " is used not in its literal sense, but as including all reversioners and remaindermen, and those who have but a spes suc- cessionis, and to whom monej has been lent merely on the credit of their expectations, ') and the relief extends not only to sales but to charges by them on their reversions, and to post-obits given by them. ^*) As we have seen the principle on which equity originally intervened to set aside hard bargains with expectant heirs was for the protection of family property, and on grounds of public policy, but this ineqnit- principle being once established the coiu-t extended its aid to all cases of unfair bargains where the weaker parly is not in a situation to enable him fairly to make a bargain for himself. (ii.) That the iceaker party had no legal or independent advice. In cases where one party is charged with having obtained an undue advantage over the other, the presence or absence of legal advice is, naturally, very important ; and the proof that the weaker party had an independent solicitor will go far to disprove that any unfau' advantage has been taken of him ; and in any case where there is reason to suspect fraud, the want of legal advice will be a material element in the decision of such a case. (a) Beynon v. Cook, L. K., 10 Ch., App. 391 n. (b) Tottenham v. Emmet, 12 L. T. X. S. 838; The Earl of Aylesford v. Morris, 8 Ch., App. 484, at p. 490. 87 (iii.) That thi- dealifufs were between viortijayor (Dili mortgaiji'e. in iiickes v. Cuuke, '"' tliouy^li relief was not given on the ground of acquiescence for nearly tifty years, Lord Eldon (C) said iliat a ('ourt of Equity looked with a great deal of jealousy upon fee-fariu grants or leases, at a tixed rent, made of mortgaged premises by the mortgagor to the mortgagee ; and the Courts look on with jealousy, and scrutinize narrowly any transaction in which the mortgagee purchases from the mortgagor the oquit}' of redemption. "'> (iv.) That one party xoas as it tvere taken by surprise. In Evans v. Llewellin, 1 Cox Ca. Eq. 333, a deed was set aside, which was given by a person in humble circumstances, who did not know of his right to some property, and who on being told of his right to it, was at the same time offered for it by his informer a sum, which though large to a person in his condition of life, Avas an inadequate consideration. (v.) That one party was an uneducated or ignorant person and luithout proper advice. In Baker v. Monk, 4 De G. J. & S. 388, a sale that took place between a person in good circum- stances and a poor woman wholly unassisted, un- advised, and unaided, was set aside. (a) -t Dow IG. (6) Ford V. Olden, L. K., :} Eq., 401 ; Barrett c. Hartley, L. K., 2 El]., 7SI) ; and .tec per Walker, C, in Kevans r. Joyce, 1896, Ir. K., vol. i.. 4-i2. 38 Lord Justice Knight Bruce said : " The parties " were not on equal terms. The plaintiff was not '* competent to advise herself and had not the "protection she ought to have had." In Eees v. De Bernardj (1896), 2 C. D. 437, where the defendant, having ascertained that two old women were entitled to a large property, induced them to sign an agreement, whereby in consideration of his revealing to them the existence of their pro- perty and of their title to it (of both which circum- stances they were unaware), they agreed to give him half of the net amount. The old women were ad- vanced in years, illiterate, and of very humble rank in Hfe, and had no solicitor acting for them, and accordingly the agreement was set aside on the ground that the parties were not on an equal footing. (") (vi.) That decejjtion has been practised by one side on the other. In Tyler v. Yates, ^''^ an elder brother accepted a bill for an amount which included a sum due on a prior bill from his younger brother, and further advances to the latter. Further sums were afterwards advanced by the money-lender on similar bills, part of the x^roceeds being received by the elder brother, part by the younger brother ; and the elder brother gave charges for all the sums due on the bills upon a reversion to which he was entitled on the death of (a) See also Clark r. Malpas, -i De G. F. aud J. -101; Fry '•. Lane, 40 Ch. D. 312. (b) 6 Ch., App. 665, see Helsham r. Barnett, 21 W. R. 309; Howley r. Cook, Ir, R., 8 Eq., 571. 39 his mother. Tlio yonnf!;er brother was umler acre when he accepted the first bill, and so was under no l''^':il lial>ility on it, but the elder brother was not told this, and did not know it. The elder brother was relieved from payment of more than was actually advanced to him or to his brothei-, with interest at per cent., and the securities were held only liable for that amount. And the fact that deception has been practised by one side on the other would especially influence the Court in family agreements where uberrima fides is required on all sides.'") (vii,) That the dealings were ivith litrsnns under pressure of necessity, without adequate protection. Lord Hardwicke, in the Earl of Chesterfield v. Janssen/''> enumerating the cases in which equity relieved against what he termed fraud, said : " A " third kind of fraud is that which may be pre- ** sumed from the circumstances and conditions of "■ the parties contracting, and this goes further '• than the rule of law which is that it must be " proved, not presumed ; but it is widely established " in this court to prevent taking surreptitious advan- " tage of the weakness or necessity of another, " which, knowingly to do, is equally against cou- " science as U> take advantage of his ignorance ; " a person is equally unable to judge for himself in (a) Teniient i-. Tennents, L. H. 2 II. L. (Sc.) G. ((,) 2 Ves. 125. 40 " one as in the otlier," and Lord Selborne, L.C., in The Earl of Arlesford r. Morris, ("' said, '' It " that is the Act as to Sales of Eeversions, 31 Yict. c. 4, " has in no degree whatever altered the onus probandi •* in those cases, which according to the language of '' Lord Hardwicke raise ' from the circumstances or " •' conditions of the pari:ies contracting — weakness " * on one side, usury on the other, or extortion, or " ' advantage taken of that weakness ' a presumption " of fraud. Fraud does not here mean deceit or " circumvention, it means an unconscientious use of *' the powers arising out of those circumstances and " conditions, and when the relative position of the " parties is such as prima facie to raise this presump- " tion, the transaction cannot stand unless the party " claiming the benefit of it is able to repel the '' presumption by contrary evidence proving it to " have been in point of fact, fair, just and reason- " able. . . . It is sufficient for the apphcation " of the principle, if the parties meet under such " circumstances as in the particular transaction to " give the stronger party dominion over the weaker." So Sir George Jessel, in !Middleton r. Brown,'''' conunenting upon the meaning of ' hard bargains ' said, "Again, what is the meaning of the term " ' hard bargain.' If it has any distinct meaning " at all, as distinguished fiom a mere term of *' abuse, it means in equity an unconscientious " bargain — that is, a taking advantage of the position " of one of the parties to the contract, and when I (a) 8 Ch., App. 484, at p. 490. (6) 47 L. J. Ch. 411 at p. 413. 41 '* sar taking arlranta^, I mean of eonne, taking ** an unfair a^lvantage." I- igh the Court purportwi to !»^: aaii*- trai- - . .; in which one party had taken a^lTaxi- tage of the weakneii^ or n^ceasitr of another, in practice few iniftances are foond before 1880 wh^re this wa- ' t in cases where the monev waa lent ou :.. , . . ... !:yf a rerersion or on the credit of a person's expectations '*' ; and the reason of this probablr was that the usnrr laws when in force wcrre sofBcient to meet - -5 '*' ; bnt the repeal of the osurr laws bron_„ . .... operation to a greater extent than before the principle which prevente«il anr oppressire bargain, or any adrantage exacted from a man under grievous necessity and want of monev from prevailing against bim In NeviU r. Snelling ' a monej-lender, who knew that the borrower could not repav, but relied npou obtaining pavment bv bringing presisure to bear opcMi the familj and tlie friends of the borrower, adraneed sums of moner at a high rate of interest. Denman, J^ allowed the notes to stand onlv for the sums actuaUj adraneed with interest at fire p^r cent., and in the course of his judgment said : *- 1 *< can find no ease which decides that the inter- '* ference of the Court is limited to cases in which ^* the dealings have been with expect;^ ' -. or ^ rerersioners, or to cases in which th<- _- La.- ^ been one in relation to an expectancv. :» Ajlirfiml (Esri oO r. Monis, "f^ „) Ptr Sir J. Scoan, TX^ ia Bama 41 ; Wood r. Abbey, 3 Madd. 417; Beynon r. Cook, lU Cl>. Api>. 'AHU; t'p)ft v. Crahain, -' De G. J. & S. 155. (b) Supra. (r) 29 Ir. R. 500, at p. 527. 44 *' B}" a long" continued and hitherto uninterrupted " practice the Court gives 5 per cent., not as the " interest which might have been charged upon a " valid bargain under the particular circumstances " of the case, but as a sort of court rate for such " cases. We cannot consider what might have been " a fair bargain in this case The Coui't " never yet has entered into speculations as to the " terms which the lender might have made without " rendering the bargain void ; and we are not called " on to favour a man who has made a bargain which " we set aside as unconscionable." And this definite rule of only allowing interest at 5 per cent, marks the difference of relief under the Act, and under the power inherent in Courts of Equity. When relief is given under the latter, the transaction is altogether set aside, and the Court does not attempt to ascertain what might have been a reasonable contract under the particular circumstances, but as the weaker j)arty has had the advantage of the other's money allows interest for it at a fixed Court rate. But under the Act the Court does not set aside the contract but rectifies it, and awards as interest what it thinks reasonable having regard to the risk and all the circumstances of the particular case. When a transaction is set aside on the ground of it being inequitable the practice as to costs seems to be unsettled. (") In Nesbitt v. Berridge ^*' the usual course in (a) I'cr Kay, J., in Fry v. Lane. (6) 1 N. R. 345. 45 the iibsfiiL't' ot" iiiiscouJuct was said to !)•' to crive no costs to either party, but Monroe, J., in Kevans y. Joyce, said : *"> " The rule is not uniform, thoulieatiou for relief will be made at the trial, the Court will of course Hee that the plaintiff is not prejndieed by an application for relief being sprung on him at the trial, and will if uecessjiry adjourn the bearing of the case. (!<• Notwithstanding any statement of account. When the money lent is not repaid to the day- and the borrower applies for a renewal, it is usual for the mone3'-lender to get an admission of his account. It might be thought, should the money- lemler sue on the account stated, that the Act did not apply, as the money-lender was not in law suing for the recovery of money lent, but on the account stated which is an independent cause of action, and therefore these words are inserted e.c abundanti cautehi to show that the Court can re-open any such account. (Ill May re-open any account already taken. This must mean any account connected with the money lent or agreement sued upon. It could not mean if money was lent, say in Nt)vember, 1900, and after divers accounts, this transaction was settled 48 and finished in November, 1902, and then in 1904, more money was lent which not being paid Avas sued for, that then the Court on finding the latter trans- action unconscionable could re-open the former. And it seems that this would not include an account taken before the Act. For instance, if money borrowed before the com- mencement of the Act not being paid when due, an account was stated, also before the commencement of the Act ; and this not being paid when due, another account was stated, this being after the commencement of the Act, and the money-lender sued on his second account. It is submitted that the second account only can be re-opened, but not the first as that would give the Act a retrospective force not intended, the Act being intended to apply only to money lent, or agreements made after the commencement of the Act. <") (12) Relieve the person sued from payment of any sum in excess of the sum ad- judged by the Court to be fairly due in respect of such principal, interest and charges. Having found that the interest or other charge is excessive, and that the transaction is harsh and unconscientious, there remains for the judge the very difficult task imposed on him b^^ the above provisions of deciding what, considering the risk and all the circumstances, is fairly due to the money- lender for his principal, interest and charges. To be able to fairly appreciate the risk the (a) See p. 23. 49 inoney-lt'inK'r iiiciirrtvl or tliuii^ht lir h;nl 1(» iiiciu', the jiulfj^e must put hiiusrlt" iutx tin' t'oi-iurr's jMjsilidu Jit the time the cDutract was made, tor it must lir rememljered that the jutl^e has to (h'cide not wliiit in tilt' li<^''ht of subsecjUtMit events is a fair contract, but what attiT putting himself in the position of the lender at the timi: the contract was ma h', and cku- siderini,' tlie risk run, would then be considered fair and reasonabh to cliarge for interest. '"* As, liowevcr, the money-lender would dear a mucli smaller rate if this was tin- only charge allowed to him, it seems that some sum or a reason- able percentage should be allowed him for the necessary expenses of carrying on the business, as rent, clerks and other office expenses, such as looking after defaulting creditors, and also something to cover bad debts. And, tinally, there is to be settled what sum (if any) should be allowed for special charges and ex- penses in the particular transaction, such as for valuing the debtor's security, or for railway fares expended in visiting the debtor. It may be that until the practice under the Act has become settled different judges will allow very different sums nnder the same circumstances, but much must necessarily depend on the circumstances of the case and the tribunal before which any transaction comes. { a. loan was made to a trader, at a rate (»f interest varying with the profits of his business, and the amount of the loan and the interest was secured i)y M mortgage of the lease of the house where the business was carried on, and of the goodwill of the business ; the trader became bankrupt, and although section 5 of the Partnership Law Amendment Act, 18(35, enacts that " In the event of any trader b^ing "adjudged a bankrupt the lender of •• any loan at a rate of interest varying with the profits " of the business shall not be entitled to recover any *' portion of his principal, or of the profits or interest '' payable in respect of such loan until "• the claims of the other creditors ;h nothing is due. And i1 is important ton<»tice that the two sub-sections are correlative, except as to the time at which relief may be given, and the persons against whom it may be given. As the first sub-st'ctioii deals with the case of a money- lender trying to enforce his agreement, relief can only be granted when something is due, and it seems only against the money-lender ; but under this sub-section relief can be granted though nothing is due, and it seems not only against the money-lender but against any assignee who is not a bond fide holder for value, without notice. (1) At the instance of a borrower. Two ways naturally suggest themselves in which the borrower might apply to the High Court for relief. The first is by bringing an action for an account ^"^ or for a declaration that the transaction is not binding on him, and to have the documents cancelled (a proceeding which at the present time has practically fallen into disuse), or for a declaration that the contract is harsh and unconscionable and ought to be i-eopened and to have the documents cancelled or revised, and an account taken under the provisions of the Act. The second is by taking out an originating suin- iiions. It is not at present, however, the practice on ((«) Set" BuUcii aiul Leake's " Precedents of IMendinp," 5tli Ed., 1>. ob. 54 an originating summons to determine any matter involving disputed facts ^"^ and therefore it is safer until the practice is more settled to proceed bj bring- ing an action for an account under the Act. (2) Any Court in which proceedings might be taken for the recovery of money lent by a money-lender shall have and may at the instance of a borrower . . exercise the like powers. If the money-lender himself invokes the aid of an inferior Court, he cannot complain if that Court in order to ascertain what he is fairly entitled to re-opens the whole transaction, yet if the borrower was allowed to apply to any Court in which the money-lender could enforce any part of his agreement, as the pay- ment of interest, the borrower could often, without the consent of the money-lender, confer on an inferior Court jurisdiction to settle sums far beyond its ordinary limits ; and so it seems the borrower can only successfully apply for relief to any Court in which the money-lender coidi recover his principal, and only such a Court can grant relief on the borrower's appli- cation, though as we have seen under sub-section (1) when the money-lender is trying to enforce his agree- ment, any Court in which he take proceedings can srrant relief. And further the Court cannot under sub-section (1) or sub-section (2) relieve the borrower, or person liable from payment of what is due under the contract, when the money-lender has assigned his (a) Nutter v. Holland (1S94), 3 Ch. 416; Re Powers, 30 Ch. D. 291. rights uudtT tliu cniitracL to a hundjidc holder tur vahie without notice, since by sub-section (5). the riglits of the hitter an- not tn !»•' iitl'iM'trd h\ the Act ; and in such a case th»» only remedy (»1 the borrower is one against tlif iiKnify-lriid.'r personally. (|j Notwithstanding that the time for re- payment of the loan or any instal- ment thereof may not have arrived. Hitherto it has not been the custom of the Courts to make declarations as to future rights until questions as to them arise ; and so in order to enable the borrower at any time to determine his posit i(»n under the contract, the Court is expressl}' given power to entertain any application for relief though at the time nothing is due under the contract. Tlie Courts, however, will not look favourably upon a borrower who, after obtaining a loan on certain terms, immediately applies to the Court for relief from those terms. Oil any ai)i)lic'ation relalinir to the adniis- section i. sion or amount of a proof by a iiioucy- leiider in any bankruptcy proceedings, tiie court may exercise tlu^ like powers as may l)e exercised under this section when proceed- ings are taken for the recovery of money. By theliankruptcy Act of 18UU, .>i and 'A Viet., c. 71, sec. 2o, where a debt, which includes interest, has 56 been proved upon the debtor's estate, all interest exceeding 5 per cent, per annum is postponed until all the otlief debts have been paid in full, when the creditor is entitled to receive the rest of his interest out of the surplus, if any ; and therefore the power given bj this sub-section will only be of advantage where there is another debt which includes interest above 5 per cent, per annum, due to some one who is not a money-lender, or in the rare cases where, after paying all the other debts, a surplus remains for the bankrupt. lub-S.h) The foregoing provisions of tliis section shall apply to any transaction which, whatever its form may be, is substantially one of money- lending by a money-lender. When the usury laws Avere in force it was soinp- tinies attempted to disguise usurious contracts under the mask of a sale and a re-sale ; instead of the lender lending money he would soil goods to the borrower at an excessive price, it being understood that the borrower would at once resell them ; but whenever the Ooiirt came to the conclusion that it was but a method of lending money under the mask of trading it refused to enforce the transaction. <"^ And when lending at any interest at all was forbidden another device to evade the law was to lend money to be repaid at a certain date without interest; but there was a condition in the agreement, (a) Barker i*. Vansommer, 1 Bro. Ch. 149. 57 tliatif the ni()iit\v Ifiit was not repaid dii that datr, there shoiiM Ix' payahh' at tixcil jtcriixls until it was paid a certain snni, which nuniinally was to recoup the sender for the trouble and expense of havin<; to send for tlie money, but whieli in reahty was interest on the money k'nt. And ii')W the Courts will nai-rnwly scan any trans- action which seems to be an evasion of this Act, and if it comes to the conchision that in substance it is (tne of money-lendin<; by a money-lender wdll give ri'licf, however the transaction may be disguised. Notliiim' in the l'urL'i>uiii^- provisions ol' Section i. ~ o o 1 Sub-sec. (5) this section shall affect the rifj-hts of anv bond fide assignee or holder for value withoul notice. The money-lender may of course assign his right :» under the contract, and this sub-section enacts that where he does so to a himd fide holder for value without notice, the rights of the latter are not to Ik* atfejted by the Act, but are to be the same as if the Act had not been passed ; and so, where the assignee is a hand fide holder for value without notice, the Court cannot, on the application of the borrower, re- open the transaction under sub-section 2, and the assignee when he sues the borrower can recover tlie whole amount payable under the agreement; and the borrower's on'y remedy is one against the ni(»ney- lender personally. But although the borrower, when sued by a ho mi 58 fide assignee for value without notice, cannot obtain relief by having- the transaction re-opened, yet he can set up all the usual defences available against assignees. At common law, choses in action, with a few exceptions as negotiable instruments, could not be assigned to another; and when the assignee invoked the assistance of a court of equity, the court of equity, on giving effect to the assignment, acted on the maxim that he who seeks equity must do equity, and conferred no better title on the assignee than that of his immediate assignor, or, as it is some- times expressed, the assignee took the chose in action subject to the equities attaching to it in the hands of the assignor ''"■' ; and by the Judicature Act of 1873, ^''■' which enables debts or other legal choses in action to be effectually assigned at law, expressly makes the assignment subject to all equities which would have been entitled to priority over the right of the assignee, if that Act had not passed. Thus, if a debt be assigned, and the debtor has the right to set off some payment or credit against the assignor, he will have a similar right against the assignee (''), and generally the assignee takes subject to the state of accounts between the assignor and the debtor. ('^ But this rule that " the assignee of a chose in "' action takes subject to all rights of set-off and other '•' defences which were available against the assignor " is subject to the limitation that after notice of an (a) Graham v. Johnson, L. K. 8 Eq. 36. (b) 36 & 37 Tict., c. 66, sec. 25, sabs. 6. (c) Young V. Kitchen, L. K. 3 Ex. D. 127. (d) Bergman c. Macmillan, 17 Ch. D. 4i3. 59 iissiLTiiiiu'iit of a c'lio.so in action, tlie debtor caiuiut, by paynuMit or utlit'rwi.sf, «lo anything lo take away or diininish the riy;hts of the assi«juee as they stood at the time of the notice. •'> But as the debtor is entitled to have all accounts under his contract taken together once for all, whether there has been an assignment or not, he is not prevented from availing himself of any set-olf which arises out of the same transaction as gave rise to the debt assigned, even after he has received notice of the assignment. ^'^ Thus the debtor can raise against the assignee any set-off, which he had against the assignor at the time he received notice of the assignment, whether it arose out of the same contract or not ; and can also raise any set-ott' or counterclaim arising after receipt of notice,if it arises out of, and is inseparably connected with the dealings and transactions, which also give rise to the subject of the assignment *'"' but cainiot raise against the assignee any set-off or counterclaim which arises, after receipt of notice, from an in- dependent contract, although the latter was entered into previously to receipt of notice, unless from the nature of the transaction it appears that the original parties intended there should be a set-off". ('" A chose in action may be successively assigned over any number of times, and each successive assignee {: Jones, L. R. 1 P. C. 50. 61 aocoiilin<^ to tlu* nmxiin, otnue ficcexsoniim ceil it /triii- ciiialt. Thus, it' a dfltt sccun-il l»y iiH'rlLTiiLr"' 1>'" ;i.ssii;iiH(l, tlie iissigiu'e will be t'iititl«'(l to tlu' bt'iu'tit of tho luortjjiige, for tlie law attixi's tlio lii^ht to the of tlip circumstance which make the cojitract harsh an will be issued to the money-lender, who will also be manager or secretary to the company. The money-lender will thus carrv on his money-lending business under the name of th.- company, and when the reputation of that companv (a) Sec The Companies Act, 1867, 30 & 31 Vict. c. 131. sees 27 to 32. 6C^ becomes too well known, and otlier aliases are wanted, he lias but to repeat tlie process, and call the new companies by the desired names, and as the shares are share-warrants to bearer, the public will be unable to discover that all the different companies are really composed of the same money-lender. (1) — A money-lender as defined by this Act shall register himself as a money- lender in accordance with regulations under this Act. The requirement o£ registration is not a thing unknown to our statute book. Many persons have to register themselves, such as pawnbrokers, and marine store dealers, and indirectly all persons in professions may be said to be registered. By section 3 (1) the regulations as to registration are to be made by the Commissioners of Inland Revenue, subject to the approval of the Treasury ; and by that section the Commissioners may make regulations respecting the registration of money- lenders, whether individuals, fii'ms, societies or com- panies, the form of the register, and the particulars to be entered therein, and the fees to be paid on registration. By the regulations that have accordingly been made <") the whole of the month of November, 1900, is allowed for the first registration ; and so, though the («) See Appendix p. 100. G7 Act fniiniienees on ihc First of November, I'.MM), money-lenders may carry on their buiiiness ot money- lendinyf until the end of Xovember without rej^ister- in;^' tlicmselves. But this seems oidy to save them from l>ein Treasury. '^"^"^'^'• may make rei^ulations respectini;- the reij^istra- tion of money-lenders, whether individuaK. firms, societies, or companies, the torni of 72 the register, '^^ and tlie particulars to be entered therein, and the fees to be paid on registration and renewal of registration, not exceeding one pound for each registration or renewal, and respecting the inspection of the register and the fees payable therefor.'-^ The registration shall cease to have effect at the expiration of three years from the date of the reo:istration,'^' but may be rencAved from time to time, and if renewed shall have effect for three years from the date of the renewal. (1) May make regulations respecting . . . . . the form of the register. Regulations in accordance Avitli this section have been made, and are set out in the Appendix. <"' From them it will be seen that the forms for registration differ according as the "money-lender" is (a) an individual, {b) a firm or unincorporated society or company, or (c) an incoi^porated society or com- pany. (2) The fees to be paid on registration and renewal of registration (1) p. 72. (2) p. 72. (3) p. 73. («) pp. 100 & 105. and respecting the inspection of the register and the fees payable there- for. The tee tor reijisterinij is oii*» pound in respect both of un original rejjistnitiou and of a renewal of a reijistration. If the business is carried on in more than one part of the United Kingdom, a sejKinite registration must be made for each such part. The fee for inspection, and for a certified copy (if required K is in all cases one shilling in respect of each return inspected. Uj)on the certitied copy the stamp duty of one shilling will also be piyable. The returns reudeivd to tlie othces for ivgis- tnition, and also the copies thereof sent to each collector of Inland Revenue in the United Kongdom in respect of such mc^ney-leuders as carry on business in his collection, are open to public inspection on payment of the fee of one shilling, which fee entitles the applicant to be furnished with a copy of the regisleivd return. I-' The registration shall cease to haveeffect at the expiration of three years from the date of the registration. By the regulations that have W^en made one calendar UKaith's grace is allowinl for the renewal of registration, which this sub-secti».»n rtniuires to be made every three years from the date of the preceding reirist ration. 74 Penalties for false statement and representations. Section 4. If aiiv moiieY -lender, or any manager, agent, or clerk of a money-lender, or if any person being a director, manager, or other officer of any corporation carrying on the busi- ness of a money-lender, by any false, misleading, or deceptive statement, representation, or pro- mise, or by any dishonest concealment of material facts, fraudulently induces or attempts to in- duce any person to borrow money or to agree to the terms on which money is or is to be borrowed, he shall be guilty of a misdemeanour, and shall be liable on indictment to imprison- ment, with or without hard labour, for a term not exceedins^ two vears, or to a fine not exceed- ing five hundred pounds, or to both. Borrowers who have obtained loans by false rex^resentations about their reversionary interests or tlieir property or position generall}' may be convicted of obtaining money by false pretences. But a money-lender who makes promises he never intends to fulfil, and uses deceptive words in advertisements and interviews to induce a person to give his security and to become liable to obhgations, which result or may result in his goods being taken, seems not to liavr jiut liiiUM'lt' within tiic icacli til tlir friiiiiiml law before this Act ; aecoriliiigly the legislature has attoinpted to put money-lenders and bctrro-wers more under tilt' same measure i»f criminal liability. The wonl '• iiiistlemeantiur " has nt> iiifanin<^ in Scots law, but by the Interpretation Act, 1889, '"' it is enacted that " In this Act and every Act passe2. 76 was an infant, unless he proves that he had reasonable ground for believing the infant to be of full age. For some time it lias been recognised that great mischief ensues from the practice of sending circulars to boys or young men under twenty-one, in^dting them to gamble or borrow money; and accordingly by the Betting and Loans (Infants) Act of 1892, <") the sending of circulars to a person whom the sender knows to be an infant, inviting him to bet or borrow money, was made a misdemeanour ; and by section 3 of that Act the sender of any such circular to an infant at any university, college, school or other place of education is to be deemed to have known that such person was an infant, unless he proves he had reason- able ground for believing such j)erson to be of full age. But in cases that do not come within section 3, the Act has been to a great extent inoperative, owing to the difficulty of proving that the sender of the circular knew that the person receiving it was a minor. It has, therefore, been considered reasonable that the sender of circulars inviting people to borrow money should be liable to the penalty the law imposes, if he sends them to a minor, unless he can prove that he had reasonable ground for believing the receiver to be of full age. By this section, therefore, the presumption of knowledge of infancy is extended to all cases in which circulars are sent to a minor inviting him to borrow money ; and the practical result of this will (it) 55 & 56 Vict. c. 4, ss. 1 & 2. 77 [)rt»l);ibly Ix' to iiuikc iiu»iit'\ -li-mltTs tar more cart'ful tliiiii tlit'v lijivt' brcii to wlioiii they seiul cnrnilars. it" it u-l('ii(It'r. The cKjjn'ssioii " luoiiey-leiKk'r " in this section Aft sliall iiiclu(h' cvcrv person wliosc l)usiiiess is that of moncy-hMidini^', or who advertises or announces himscdi' or holds himself out in any w ay as carryini;- on that business ;^'^ l)ut shall not include — {(i) any pawnhroker in respect of business carried on by him in accordance with the provisions of the Acts for the time beinu; in force in relatiim lo ])awubrokers ; ^ '' or \b) any rei^istered society within the meanini;" of the Priendly Societies Act, ISOG, or any society registered or having rules certified under sec- tions '1 or 4 of that Act,*"" or under thr {'xMiefit Building Societies Act, ly3(>, or the Loan Societies Act, (1)1.. 81). (2)1.. 82. (:J)i.. S3. 78 1840,'^^ or under the Building Societies Acts, 1874 to 1894 ; ^'^ or (c) any body corporate, incorporated or empowered by a special Act of Par- liament to lend money in accordance with such special Act ; or (d) any person bona fide carrying on the business of banking or insurance or bona fide carrying on any business not having for its primary object the lending of money, in the course of which and for the j^urposes whereof he lends money ; *''^ or (e) any body corporate for the time being exempted from registration under this Act by order of the Board of Trade made and published pursuant to regulations of the Board of Trade. *"^ The above definition of money-lender, which does not profess to be exhaustive, is mostly one of exclusion. The expression " money-lender " is defined to include every person whose business is that of money-lending (that is to say every professional money-lender), and also every person who holds himself out in any way as carryinor on that business ; and then certain persons or bodies, who do in fact lend money, chiefly in the (4) p. 84. (.5) p. 85. (6) p. 86. (7) p. 89. 70 \v;iy ot' foiiiiin'irr ;iiul liiiaiiei:il tloalin^, but «lo not coiiif witliiu the class colloquially known as nioney- li'ntlcrs arc specifically excluded. As the Act does not attempt to define a money- lender the uncertainty consequent on the »,'enenil description of the persons to be included in that expression may be a fruitful source of litiy^ation until the meaniii^^ of the term ''money-lender '' has been judicially settled. Primarily the question in every case will be one «)f fact, for if the person sought to be affected does not come within any of the exceptions of the section, it will have to be determined whether he is a money- lender in the ordinary and ;^-eneral signification of the word, or is, by the words of the statute, included in that expression. And it must be constantly remem- bered, when considering this section, that the word "includes" is used so that a person who does not carry on the business of money-lending may be a moncv-lcnder ; and therefore the distinction between the words " includes " and " means " should be care- fully noted, and for this purpose the following judicial opinions will be useful : — " The words 'shall include ' arc not identical with •• or put for ' shall mean.' The definition does not " purport to be complete or exhaustive. By no means " does it exclude any interpretation which the section • of the Act (the Coinage Offences Act, 186 1) would ■otherwise have; it merely provides that certain 80 " specified cases shall be included." Per Lord Cole- ridge, C.J., in R. V. Harman, 4 Q. B. D. 284 at p. 288. " The interpretation clauses referred to during " the argument provide that the word ' street ' shall " extend to and include any road. The intention of " the clause is that in construing the Act the word, " in addition to its ordinary meaning, shall bear the "■ meanings mentioned in the interpretation section. " The words ' shall include ' mean shall have the " following meanings in addition to its popular mean- " ing." Per Brett, M. E., in The Corporation of Portsmouth v. Smith, 13 Q. B. D. at p. 195. The class expressly included in tlie expression " money-lender " is thus defined : — (1 ) Every person whose business is that of money-lending, or who advertises or announces himself or holds himself out in any way as carrying on that business. The principle of inclusion in the class thus ex^Dressly named is clear, the test in any case being : " Does the particular person carry on, or does he " hold himself out as carrying on the business of a " money-lender." And it is clear from section 3 that individuals, firms, unincorporated companies oi- societies, or incorporated societies may all be money- lenders within the Act. In everj^ case it is a question of fact for the judge at the trial to deter- mine, but in practice some difiiculty may often be found in applying the test. In many cases there 81 will 1)0 little doubt tliut a i»er.si»n is iiKludfd, and in many others that he is not, but some casfs will aniu- sn near the line that it will be veiy ditlieult t<» say beforehand whether they are included or not. It anyone, thinkiny^ lie is not included, does not register himself under section 2, sub-section (1) [a), he runs the risk of subsequently being held to be a nittney-leiider, and of being summarily convicted under section 2, sub-section (2); while if he does register himself, although the fact that he is on the register may not be of itself conclusive proof that he is a money-lender within the Act, it will be difft- cult for him to attempt to persuade any Court that as a matter of fact he is not a money-lender. For those who are undecided as to whether they are money-lenders within the Act or not, it may be pointed out that if they do not register themselves they will be in no worse position ciWlly than if they do, since agreements made by, and securities taken by, an unregistered money-lender are not voided by the Act. And before criminal proceedings can be taken against them in England or Ireland, the consent of the Attorney-General or Solicitor-General for England or Ireland respectively must firstbe obtained ; and if this is obtained and they are convicted, in cases in which there is a real doubt, only a nominal fine will probably be inflicted, and until this happens they have an opportunity of proving that they are not mcjuey-lenders, and so not within the Act ; while if they register themselves, they finally V 82 settle that tliey are money-lenders, and tliat there- fore all the bargains they may make can be re-opened by the Conrt. (2) Any pawnbroker in respect of business carried on by him in accordance with the provisions of the Acts for the time being in force in relation to pawnbrokers. Pawns to a pawnbroker are regulated, as between the pawnbroker and the customer, and any one claim- ing under the latter ("^ by the Pawnbrokers Act, 1872/^) This Act fixes the terms of the contract where the amount of the loan is not over 40s. Where the loan is over 40s. a special contract may be made, varying the statutory terms as to the profit charge- able and the period of the loan ; and when this is done it must be in the prescribed form, and signed by both parties. The profit that can be charged is hd. per 2s. per calendar month where the loan is 40s. or under; when over 40s. and no special contract is made id. per 2s. 6d. per calendar month can be charged,''') which is respectively at the rate of 25 or 20 per cent, per annum. By section 17a pledge for a loan not greater than 10s. becomes the pawnbroker's absolute property after 12 months and seven days. After a like in- (a) Singer Manufacturing Company v. Clark, 5 Ex. D. 37. (f.) 35 and 36 Vict. c. 93. (c) S. 15, Sched.4. 83 terval a pledge for any loan over 10s. may be sold at an auction, held and advertised in the j)r«'seribed manner;'"' and by section 22 the surplus realized, after deducting the money due and costs, belongs to the holder of the ticket. And a pawnbroker's business is generally regu- lated by the Act. By section *J7 he must have a yearly licence for each shop ; by section Hi he must have his name over the shop door, and must keep posted up in his shop a copy of the fixed terms of contract ; and by section 13 must keep a pledge-book showing the particuhirs of every loan, and must give a pawn- ticket to every pawnor, showing the terms of the contract. By section 10 the Act does not apply to loans over £10, and no one is to be considered a pawnbroker by reason only of his lending any sum or sums over £10. Accordingly no one who lends any sum or sums over £10 is excluded by this sub-section from the expression " money-lender." {'■]) Any registered society within the mean- ing of the Friendly Societies Act, 1896, or any society registered or having rules certified under sections two or four of that Act. The Friendly Societies Act, 1S9G <''^ applies chiefly to benevolent societies, that is to say societies formed (a) Ss. 18, 19, Sched. 5. (6) u9 &. UO Vict. c. 25. t 2 84 for providing help to non-members, cattle insurance societies, working men's clubs, or what may be called friendly societies proper. The last are societies formed by voluntary subscriptions for such purposes as (i) the relief or maintenance of members in sickness or bodily or mental infirmity, or in old age. (ii) The insurance against fire to an amount not exceeding £15 of a member's implements of trade, (iii) The in- surance of money to be paid on the birth of a member's child, or on a member's death. The benefits to the assured must, if annuities, not exceed £50 per annum, nor a gross sum of £200. (") (4) Any registered society under the Loan Societies Act, 1840. A loan society is a society for establishing a fund for making loans to the industrial classes and takino" repayments by instalments with interest. If the persons composing it desire to have the benefit of the Loan Society Act, 1840, (*) the rules for the management of the society must be certified, de- posited and enrolled, including the scheme of lending and repayment and the rate of interest. (^) By section 13 a loan society certified under the Act may not lend more than £15 to one person at the same time, nor have more than one loan to the same person outstanding ; and securities taken for a loan are not transferable or negotiable. (a) S. 41. (h) 3 A 4 Vict. c. 110. (c) Ss. 3, 22, 23,sched. E. So (o) Any registered society under the Build- ing Societies Acts, 1874 to 1894. A buildinj^ society formed in accordance with the Building Societies Acts is a society for the purpose of raisin*^, by the subscriptions of the nienxbers, a stock or fund for the purpose of making advances to members out of the funds of the society upon security of real or leasehold estate by way of mortgage. ^"^ liuildiiig sociiities are eithor terminating or per- manent, and all, whether terminating or permanent, which are governed by the Building Societies Acts, 187 1 to 1894, are incorporated. A terminating society is one which is to terminate at a fixed date, or when a result specified in its rules is attained. A permanent society is one which has no fixed date or specified result at which it is to terminate, and therefore may continue for an indefinite time.^*' In terminating societies, as soon as there are sufficient funds in hand from the fixed subscriptions which the members pay, advances are made to members in anticipation of what would be payable to them, on the termination of the society ; and a member who receives an advance gives a mortgage to secure tlie continued payment of the subscriptions due to him from the society. In a permanent society the members take shares of a certain fixed anioimt, on which payment has to ((() Building Society Act, 1874, 8, 13. ((.) S. 5. 86 "be made either iu a lump sum or by instalments, on which interest is usually payable. Advances are made from time to time to members on mortgage of real or leasehold property, the amount advanced varying according to the number of shares the mem- ber has ; and the money advanced is usually repayable by instalments, composed partly of principal and partly of interest. (6) Any person bona fide carrying on the business of banking or insurance or bona fide carrying on any business not having for its primary object the lending of money, in the course of which and for the purposes whereof he lends money. Persons carrying on any trade or profession are not colloquially spoken of as money-lenders, and are not necessarily considered such by the Act, although in the course of their trade or profession and for the purposes thereof they lend money. Thus brewers often advance money to publicans who purchase a public- house or take a lease of one, tying them do%vn to purchase their beer, &c., only from them. This they do in the course of and for the purposes of their business, and they are not therefore " money- lenders " within the Act. Similarly any person or company who in the ordinary course of commerce or of financial dealing lends money is not a money- lender within the Act. It may be expected that the courts will frequently have to decide whether par- ticular persons come within this exception or not. 87 For if a persou clearly cannot brin^ his case within (a) {b) [c) or («•) it will probably be C( intended first, that he is not a money-lender in the popular meaning ot" the word, or in the additional meunin<^ j^iven to it by this section ; and secondly, that it" he is, he comes within this exception, as he carries on a business wliicli has not for its primurv object the lendin<^ of money, and as he only lends money in the course of such business and for the purposes thereof. By the Bills of Sale Act, 1878,('') transfers of goods in the ordinary course of business of any trade, or calling are expressly excluded from the expression Bill of Sale. But it has been held that those words do not point to borrowing money on mortgage or special agreement, and that the fact that similar transfers are frequent among certain classes of mer- chants in the same line of business, do not show that such transfers are in the ordinary course of business. <*> But to come within this exception it seems suthcient to show that the lender bond fide carries on a business which has not for its primary object the lending of money, and that he only lends money in the course of that business and for the purposes thereof ; and that it is immaterial that others in the same Ime of business do not in the ordinary course of that business lend money for the same purpose as for which it has been lent in the particular case. For instance, if a poor man living in Canada claims (.i) 41 & 42 Vict. c. 31, sec. 4. {b) Tennant v. Howatson, 13 App. Ca. 4S9 ; 58 L. T. 64t3 ; 57 L. J., P. C. IIU. 88 some property in England, and is lent some money by a solicitor to pay for his passage over to England, etc., on the condition of employing the latter to bring the action to recover the property, it seems that the solicitor probably lends the money in the course of his business, and for the purposes thereof, and so comes within the excej)tion, though it is an unusual thing for a solicitor to do. In some cases it may be difficult to decide whether money lent is lent in the coui'se of and for the pur- poses of a business, or whether a person is carrying on an independent business of money-lending, which he combines with some other business in order to make it appear that he only lends such money m the course of and for the purposes of that business. But it is difficult to see how money lent by some people as ordinary tradesmen can be lent in the course of and for the purposes of their business. A large part of the business of solicitors consists in their obtaining loans for their clients, and often, the solicitors themselves lend the money. In the latter case they obtain besides interest, fees for pre- paring the deeds, and the other usual legal charges, and often this is the reason wli}' they lend the money. Accordingly it peems that solicitors, who lend money and obtain, besides interest, charges for preparing the deeds, lend money in the course of and for the pui-poses of their business, and so come within this exception. Clients and other people sometimes employ a solicitor not simply in his character of solicitor, but as a money-agent, to invest their money 89 at his (lisfivtiiiii, ;ill<>\viii;^' him pri>cui-;it inii tV'fS tor ;iiiv sum hiid out oil Ixditl or mortj^age, as well as a fee or charpe tor preparing the deeds. The solicitor then substantially carries on the business of a scrivener,*"* and it remains to be seen whether he will be held to be a money-lender within the Act. It may be that factors or agents lending against goods, auctioneers on goods entrusted to them for sale, merchants against produce or on warrants, lend in the course of their respective business, and for the purposes thereof, and so come within this exception. (7) Any body corporate for the time being exempted from registration under this Act by order of the Board of Trade made and published pursuant to regu- lations of the Board of Trade. This power is presumably intended to be exercised in favour of finance companies whose operations, though consisting in lending money, are designed for the assistance and development of trade and are therefore quite different to the transactions at which the Act is meant to strike. Regulations under this sub-section have been made by the Board of Trade, and will be found in the appendix (*> By them a form for application is given, and all applications for exemption must be made in that form. Certain documents as copies of the Memorandum and Articles of Association must be sent with an application. (a) 1 Holt, o07 ; 3 Ciinip., 530. (6) p. 108. 90 Under the regulations the Board of Trade maj make an order of exemption subject to such con- ditions, and for such period as it thinks fit, and may at any time revoke such order ; and all orders are to be published as there set out. Short title and commencement. suf sees This Act mav be cited as the Money- ^'^'''^'" lenders Act, 1900.^ This Act shall come into operation on the first day of November one thousand nine hundred. APPENDIX. THE MOXEY-LENDERS ACT, 19u0. 63 A' 6i Vict. cap. 51. An Act to amend the Law with respect to Persons carryiiuf c<» bnsiness as Money -lenders. [Srn August 1900.] BE it enacted by the Quecn'.s most Excellent Maje.sty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows : — lie-opening of transactions of money -lendei\ 1, — (1) AV'here proceedings are taken in any court b}' a money-lender for the recovery of any money lent after tho commencement of this Act, or the enfoi-cement of any agi-eement or securit}' made or taken after the com- mencement of this Act, in respect of money lent either before or after the commencement of this Act, and there is evidence which satisfies the court that the interest charged in respect of the sum actually lent is excessive, or that the amounts charged for expenses, inquiries, fines, bonus, premium, renewals, or any other charges are exces- .sive, and that, in either case, the transaction is harsh and unconscional)le, or is otherwise such that a court of equity would give relief, the court may re-open the trans- action, and take an account between the money-lender and the person sued, and may, notwithstanding any state- ment or settlement of account or any agreement pur- porting to close previous dealings and create a new obligation, re-open any account already taken butween 94 Appendix. tliem, aud relieve the person sued fi'om. pa}Tnent of any sum in excess of the sum adjudged by the court to be fairly due in respect of sach principal, interest and charges, as the court, having regard to the risk and all the circumstances, may adjudge to be reasonable ; and if any such excess has been paid, or allowed in account, by the debtor, may order the creditor to repay it ; and may set aside, either wholly or in part, or revise, or alter, any security given or agreement made in respect of money lent by the money-lender, and if the money-lender has parted with the security may order him to indemnify the borrower or other person sued. (2) Any court in which proceedings might be taken for the recovery of money lent by a money-lender shall have, and may, at the instance of a borrower or surety or other person liable, exercise the like powers as may be exercised under this section, where proceedings are taken for the recovery of money lent, and the Court shall have power, notwithstanding any provision or agreement to the contrary, to entertain any application under this Act by the borrower or surety, or other person liable, notwithstanding that the time for repayment of the loan, or any instalment thereof, may not have ari-ived. (3) On any application relating to the admission or amount of a proof by a money-lender in any bankruptcy proceedings, the cotu-t may exercise the Kke powers as may be exercised under this section when pixjceedings are taken for the recovery of money. (■i) The foregoing provisions of this section shall apply to any transaction which, whatever its form may be, is substantially one of money-lending by a money- lender. (5) .N^othing in the foregoing provisions of this section shall afFect the rights of any bond fide assignee or holder for value without notice. Appendix. y'» (G) Nothing in this section sliiill ho constnied as dero^Tfating from the existing jjowors or jurisdiction of any fourt. (7) In tho applieatinn of this Act to Scothuul tliis section shall ho read as if tlio words " or is otherwise such that a Court of e(|uity would Ljive relief" were omitte(l therefrom. Registration of money-leiidins, ^'c. 2. — (1) A money-lender as defined by this Act — (a) shall register himself as a money-lender in accordance with regulations under this Act, at an office provided for the purpose by the Com- missioners of Inland Revenue, under his own or usual trade name, and in no other name, and with the addi'Bss, or all the addresses if more thaji one, at which he cari'ies on his l)usiness of money-lender; and {h) shall carry on tlie money-lending business in his registered name, and in no other name, and under no other description, and at his registered addi-ess or addresses, and at no other address ; and (f) shall not enter into any agreement in tlie course of his business as a money-lender with respect to the advance and repayment of money, oi* take any security for money in the conrse of his business as a money-lender, otherwise than in his i-egistered name ; and (d) shall on reasonable request, and on tender of a reasonable sum for expenses, furnish the borrower with a copy of any document relating to the loan or any security therefor. 96 Appendix. (2) If a money-lender fails to register himself as required bv this Act, or carries on business otherwise than in his registered name, or in more than one name, or elsewhei'e than at his registei-ed addi-ess, or fails to comply with any other requii'ement of this section, he shall be liable on ednviction under the Summary Jurisdiction Acts to a fine not exceeding one hundred pounds, and in the case of a second or subsequent conviction to imprison- ment, with or without hard labour, for a term not ex- ceeding three months, or to a fine not exceeding one hundred pounds, or to both : Provided that if the offender be a body corporate that body corporate shall be liable on a second or subsequent conviction to a fine not ex- ceeding five hundred pounds. (3) A prosecution under sub-section (I) (a) of this section shall not be instituted except with the consent in England of the Attorney- General or Solicitor-General, and in Ireland of the Attorney- General or Solicitor- General for Ireland. jRegulations as to Registration. 3. — (1) The Commissiouei's of Inland Revenue, sub- ject to the approval of the Treasury, may make regulations respecting the registration of money-lenders, whether in- dividuals, firms, societies, or companies, the form of tlie register, and the particulars to be entered therein, and the fees to be paid on registration and renewal of i-egis- tration, not exceeding one pound for each registration oi- renewal, and respecting the inspection of the register and the fees payable therefor. (2) The registration shall cease to have efi;ect at the expiration of three years from the date of the regis- tration, but may be renewed from time to time, and if renewed shall have effect for three years from the date of the renewal. ■Appendu. !>7 Penalties for false statement and representations. 4. If any Tuoney-lender, or any manager, agent, oi" cit'rk of ji money-londer, or if any person beins^ a fUi'octor, manager, or other officer of any corporation carrying on the business of a raonoy-lender, by any false, misleading, or deceptive statement, represcTitation, or promise, or by any dishonest concealment of material facts, fraudulently induces or attempts to induce any person to borrow money or to agree to the terms on which money is or is to be borrowed, he shall be guilty of a misdemeanour, and shall be liable on indictment to imprisonment, with oi- without hard labour, for a term not exceeding two years, or to a fine not exceeding five hundred pounds, or to both. Amendment of 55 .V 56 Vict. c. 4 s. 2, as to presumption of knowledge of Infancy. 5. Where in any proceedings under section two of the Betting and Loans (Infants) Act, 1892. it is proved that the person to whom the document was sent was an infant, the person charged shall be deemed to have known that the person to whom the document was sent was an infant, unless he pj'oves that he had reasonable ground for believing the infant to be of full age. Dejinilion of money-lender. 6. The expres.sion "money-lender" in this Act shall include every person whose business is that of money- lending, oi- who advertises or announces himself, or holds himself out in any way as carrying on that business , but shall not include : — (a) any pawnbroker in respect of business cairied on by him in accordance with the provisions of the Acts for the time being in force in relation to pawnbrokers : or G • 98 Appendix. °''^c*2s.^'*''' (fi) ^^y registered society witliin the meaning of the ^c.™^* I'riendly Societies Act, 1896, or any society ^ c ^iio^*^* registered or having rules certified under sections two or four of that Act, or under the Benefit Building Societies Act, 1836, or the Loan Societies Act, 1840, or under the Building Societies Acts, 1874 to 1894 ; or (c) any body coi'porate, incorporated or empowered by a special Act of Parliament to lend money in accordance with such special Act ; or {d) any person bond jide carrying on the business of banking or insurance or bond fide carrying on any business not having for its primary object the lending of money, in the course of which and for the purjDoses whereof he lends money ; or (e) any body corporate for the time being exempted from registration under this Act by order of the Board of Trade made and published pursuant to regulations of the Board of Trade. Short Title and Commencement. 7. — (1) This Act may be cited as the Money-lenders Act, 1900. (2) This Act shall come into operation on the first dav of November one thousand nine hundred. Appemlix. 00 NOTICE UNUKIl THK ACT K)K TIIK REGISTRATION OF MONEY-LENDERS. (<5:3 k 04 Vict. cap. 51, sec. 2.) I'^very individual, tii-rii, society or company whose Itusincss is that of money-lending is required by the ahovc Act to register his or their names, addresses and d(rseriptions. The following, however, arc not re(iuired to so register : — ((/) Any pawnbroker in respect of business carrii^d on by him in accordance with the ])rovisions of tlie Acts for the time being in force in relation to pawnbi'okers ; or {h) Any registered society within the meaning oi" the Friendly Societies Act, 1896, or any society registered or having rules certified under sec- tions two 01' four of that Act, or under the Benefit Building Societies Act, 1836, or the Loan Societies Act, 1840, or under the Huilding Societies Acts, 1874 to 1804 ; or ((•) Any body corpoi-ate, incorporated or empowei'cd by a special Act of Pai-liament to lend money in accordance with such sj)ecial Act; or g2 100 Appendix. (d) Any person bond fide canying on the business of banking or insurance or bond fide carrying on any business not having for its primary object the lending of money, in the course of which and for the purposes whereof he lends money ; or (e) Any body corporate for the time being exempted from registration under this Act by ordei- of the Board of Trade made and published pursuant to regulations of the Board of Trade. Failure to register in the prescribed form will, in the case of a first offence, entail a penalty not exceeding One Hundred Pounds, and, on a second offence a similar penalty, together with imprisonment for 3 months, with or without hard labour. The following are the regulations made by the Com- missioners of Inland Revenue, with the approval of the Treasury, under Section 3 of the Act, in respect of the registi'ation : — The whole of the month of Xovembei in the year one thousand nine hundi-ed shall be allowed for the first registration. At the expiration of three years from the date of the preceding registration, for which period regis- tration is, under Section 3 (2) of the Act, effective, one calendar month shall be allowed for a renewal of the registration. Individuals, fii-ms, societies or companies pro- posing to start in the business of money-lending for the first time after the commencement of the Act must register before doing so. A change of any kind in a firm or un-incorporated society or company, or in its place or places of busi- ness, as also a change in the place or places of AppeiuUx, 1 1 business of any iiicorpoi-ated society, company or iiulividiml, shall i-ntail a frcsli re^'ist ration which must bo niach' within one calendar month of such cluinge. The rep^istration shall be effected either by ])ORt or by personal attendance at the ])rescribed Office. The Offices for registration shall be as under — For England and Wales — The Office of the Controller of Stamps and Stores, Somerset House, London, W.C. For Scotland— Tho Office of the Conti-oUcr of Stamps and Taxes, K(liid)ur<^h. For Ireland — The Office of the Controller of Stamps and Income Tax, Custom House, Dublin. Should the business be carried on in more than one part of the United Kingdom, a separate regis- tration must be made for each such part. The fee for registering in each of the above cases shall be One Pound in respect both of an original registration and of a renewal of a registi-ation. The fee for inspection and for a certi6ed copy (if required) shall in all cases be One Shilling in respect of each Return inspected. Upon such certified copy the Stamp Duty of One Shilling will also be payable. The Retunis rendered to the above-mentioned Chief Offices, and also the copies thereof which will be sent to each Collector of Inland Revenue in the United Kingdom in respect of such Money-lenders as may carry on business in his Collection, will be open to public inspection, on payment of a fee of One Shilling, which fee will, if desired, entitle the applicant to be furnished with a copy of the registered Return. 102 -Appendix. The necessary stamped forms for registration and for searching may he purchased at the Chief Registration Offices or at the Office of any collector of Inland Revenue, or on prepayment of £1 or Is., as the case may be, maybe ordered through any Money Order Office ; but apphcants mast state whether the registration is (a) of an individual, (b) of a firm or un-incorporated society or company, or (c) of an incorporated society or company — seeing that different forms will be used for each class. September, 1900. Appemlir. lO'-l UKDKR as to till' amount of tees to Imj paid under "The Money-leiiilers Aet, ll>(.)0," and as to the collection of the same by means of stamps. WnEKKAS by Sec. 3 (1) of The Money-lenders Act, lfK)U (6;J & G-i Vict., c. 51), it is provided, among other mat^ei*8, that the Commissioners of Inland Revenue, Kub jcct to the approval of the Treasury, may make regula- tions respecting the fees to be paid on i-egisti-ation and i-enewal of registration, not exceeding £1 for each ivgistration or renewal, and respecting the inspection of the register and the fees payable therefor : — Now we, the undei-signed, being two of the said Commissioners, with the approval of the Tj-easury, do hereby order and direct : — (1) That the fee to be paid in respect of each registration or renewal thereof, whether such renewal shall arise in consequence of the expira- tion of the statutory period of three years after which registration shall cease to have effect, or in consequence of any change which may be made during that period in respect of name or names, address or addresses, of the person or persons registered or in any other particular, shall be the sum of £1. (2) That the fee payable for the inspection of each separate return on the register shall be the sum of Is. On the payment of this fee of Is., together with the stamp duty of Is. chargeable by law on a certified copy or extract from any })ul)lic register, any person shall, on demand, be furnished with a certified copy of any registered return. F. L. ROMINSON. EUMOXU H. WODEHOUSE. Two of the Commissioners of Inland Revenue. Dated tlie 11th day of September, 1900. 104 Ap/peridix. A:N'D whereas by Section 3 of - The Public Offices Fees Act, 1879," it is provided that the Treasury may, from time to tim.e, make, and when made, revoke, alter or add to, regulations for all or any of the following purposes respecting fees in any public office, that is to say : — (1) Regulating the manner in which the fees taken in money are to be taken, accounted for, and paid oyer. (2) Determining the use of impressed or adhesive stamps and the mode of cancellation of adhesive stamps. (3) Regulating the use of stamps and prescribing the application thereof to documents from time to time in use and requiring documents to be nsed for the purpose of such stamps. Now we, the undersigned, being two of the Lords Commissioners of Her Majesty's Treasury, do hereby give notice and order and direct that the fees under '' The Money-lenders Act, 1900," mentioned in the foregoing Order shall be collected by means of stamps, and that all such stamps shall be impressed stamps. The said impressed stamps shall be of such design and character as the Commissioners of Inland Revenue may from time to time adopt for the purpose. We do further give notice that this Order shall be binding on all officers or persons whom it may in any way affect. H. T. AXSTRUTHER. W. H. FiSHEE. Two of the Lords Commissioners of Her Majesty's Treasury. Dated this 3rd day of October, 1900. Appendix. 10') Fi'KM Nil. 1. FOHM FOU USE OF A I'EKSON CAltHYlMi » »N BUSINESS ALONE. Hkturn Pursuant to thk Money-lenders Act, 1900. (63 & 64 Vict. c. 51, s. 2.) £1 Stninp to be imprcBHt'd in thJH space. Own or usual trade-iianu- in which thi' jn-rson carrying <>n the busini's.s of Money-lending is to be registered. Actual Xanie, &c. , of the person in ([uestion. Name. Residence. Desckiptid.v. Names if Places where tl le business is carried on. Place. 1 CoCXTV. 1 Place. '■ County. I, being the person above described, do liereby certify that the above is a true Return of the Particulars required by Section 2 of 63 and 64 Vict., cap. 51. Signed Dated the. day of. .190 106 Appendix. Form No. 2. FORM FOE USE OF UN-IXCORPORATED COMPANY, SOCIETY, OR FIRM. Retl'rx Pursuant to the Moxey-lexders Act, 1900. (63 & 64 Vict c. 51, s. 2.) Usual trade-name in which the Un- incorporated Company, Society, or Firm carrying on the business of Money-lending is to be registered. £1 Stamp to be impressed in this space. Pei'sons of whom the Un-incorporated Company, Society, or Firm consists. Names of Places where the business is carried on. Place. County. i Place. Couxty. I, being one of the Partners whose names are set forth above, do hereby certify that the above is a true Return of the Particuhii's required by Section 2 of 63 & 64 Vict. cap. 51. Signed Dated the. ^dav of. .1900. Ai>}»'ndic. I'l: FoUM N FORM FOR rSK OF INCOI5PORATED COMPANY oK SOt'IKTY. HkTL'KN PlKSfANT TO THK MoXKV-I.KN'DKRS ACT, 1900. (63 & 64 Vict. c. 51, s. 2). £1 Stfiiiip to be ini))n's8eil in this Hj)aco. Name in which the Incorpoi-ated Company or Society caiTviii','' on tlio business of Moncy-Undinfj is to be reLfistcreil. Names of Places where the business is carried on. 1 l'l,\' K. Col-.NTV. I (being the Managing Director, or Secretaiy, as the case may be, of the Company or Society) do heivby certify that the above is a true Return of the Particuhii-.s required by Section 2 of 63 &, 64 Vict., cap. 51. Signed. Dated tht -day of- -1900. REGULATIONS Made by the Board of Trade pursuant to section 6 (e) of the Money-lenders Act, 1900. THE MONEY-LENDERS ACT, 1900. Whereas by section 6 of the above-mentioned Act, it is provided that " the expression ' Money-lender ' in this " Act shall include everj person whose business is that of " money lending, or who advertises or announces himself, " or holds himself out in any way as carrying on that " business ; but shall not include, inter alia — " (e) Any body corporate for the time being " exempted from registration under this Act by order " of the Board of Trade made and published pursuant " to regulations of the Board of Trade." Now, therefore, the Board of Trade, in pursuance of the powers vested in them by the above-recited section, do hereby make the following regulations accordingly : — Regtdations. 1. The application for exemption under the above section shall be made on foolscap paper in the form A hereto annexed, and shall be signed by some responsible officer by and on behalf of the body corporate seeking for such exemption. 2. Such iipplinition sluiU he accoinpanicil hy — {(i) In tlif c'lusf of a body corponitf i('U'-i>tiTc(l uiuli'i- till' Companies Acts, a copy of tliu McMnonimluin ami Articles of Association, and, in otiiei- cases, a copy of the Chai-ter, Deed of Settlement, or other docu- ment of incorporation, and the reBiiinptioii of kuuwludgo of 7o, 70 iNTKKEsr c>t|uivak'nt for wlint ciilctilatfd mi Biiins iictiially lent wimi is iictnally lent wlien L'xcessivi' si-alo nf, ill bill as originally introduced •J, 2'.) 27 i7, 2H 29 29 IXIKKI-LKAHKK - wlictlior roljcl" wiieii iiiMiicv-lemliT (.-laiinaiit in 22 Irelaxk — consent fif law oHicer for jirosecutioii for non-regis- tration... 71 JUKISDU riON l.\ H.VXKKfl'irY ti) give relief on nioney-lanilor's ]iroijf ... Loan Societiks — not money-lenders... maximum to be lent by objects of ... .S4 81- 84 MeK(.HANT8 — lending against produce, wliether money-lenders MiSDKMKA.NOLR — false statement Ity nioni-y-iender a Money-lender — definition and meaning of jiersons expressly included as who is a, (piestion of fact .. are brewers... are scriveners are factors lending against goods are mcrchHuts lending against produce... are auctioneers on goods entrusted to them for sale are solicitors 89 77,78 78 79 HU 89 89 89 89 88 118 Index. Money-lender — continued. false statement bj, a misdemeauour ... ... ... 74 . ref^istration i)f name and businos.s address of ... ... 64, 69 omission to ... ... ... ... 65 regulations as to carrying on business of ... ... 69 agreements by... ... ... ... 65,69 to furnish copy of agreement on request ... ... 65 refusal to ... ... ... ... ... ... ... 65 pawnbroker not ... ... ... ... ... 82 lending in the course of some other business, not a ... 86 what is 22, 79 friendly societies not ... ... ... ... ... 83 loan societies not ... ... . . ... ... ... 84 building societies not ... ... ... ... ... 85 MONEY-LENDEES AcT, 1900 93 object of 15,64,75,76 short title 90 time of commencement ... ... ... ... ... 23,90 to what agreements it applies ... ... ... ... 23 when relief given under ... ... ... ... ... 23,25 how relief under, differs from relief under old law ... 46 registration under ... ... ... ... ... ... 62,66 pi'esumption of knowledge of infancy under ... ... 75 false statement by money-lender a misdemeanour under ... ... ... ... ... ... .. 74 Mortgagor and Mortgagee — dealings between, scrutinized by equity ... ... 37 Name — of money-lender to be registered ... ... .. 69 Necessity — relief given to persons under pressure of ... ... 39 Notice — of assignment of transaction being unconscionable Object oe Act 59 ... 61 5, U, 75, 76 Index. 119 I>\GE. Okkkks kok Registratiox ... 08 I'aktxersiiip- frfsh rt^gistration on chaiii^c in ... ... ... ...67, \(X> Pawxiikokers — not within Act .. ... ... ... ... 77 rata of interest uUowoil to ... ... ... ... 82 restrictions on bnsinoBS of ... ... ... ... 83 Pav.mkxt — onlarpin^ time for, not fre.sh agroomenf ... ... 25 PO.ST-OBIT liOM) — relieved against ... ... ... ... ... ... 36 given as sci-tirity for loan by expectant heir ... ... 36 Proof in Baxkrii'tiy — rel iff can 1)0 given ... ... ... ... ... 55 Pkotkctei) Tkax.sactioxs — purchaser in good faith and without notice ... ... 57 PURCHA.SER — in good faith and witliout notice ... ... 57 with notice ... ... ... ... ... ... ... 01 Register — omission to ... ... ... ... ... ... 05 inspection of ... ... .. ...73,101 cert ill e(J copy of 73,101 ,, fees for 73 form of 105,106,107 Regi.stratiox — object of ... ... ... . . 64 evasion of ... ... .. ... ... ... 05 of trade-name and bnsinoss-addre^.-^ ... ... 69 time for ... ... ... ... ... ... ... 66 renewal of ... ... ... ... ... ... ... 73 separate, for eiicli jiart of the United Kin.'iiom ... 73 fees on ... ... ... ... ... ... ... 73 122 Index. PAGE. Trade Name — may be registered ... ... ... . . G9 Usury — meaning of ... ... ... ... ... 9 the view of Greek and Koman moralists on 9 treated as sin by church ... ... ... 10 forbidden by Edward the Confo.ssnr ... ... .. 10 always lawful for Jews ... ... .. ... 11 Usury Laws — list of statutes . . ... ... ... 11 repeal of the ... ... . .. ... 12 „ effect of 13 attempted evasion of 50 ) FORMS OF RETURN MONEY-LENDERS ACT, 1900, WATERLOW BROS. & LAYTON, LIMITED. Tiro saiLLiNoa per qvise. No. 1.— For use of a Person carrying on business alone. No. 2. For use of Unincorporated Company, Society or Firm. No. 3.— For use of Incorporated Company or Society. FORMS OF BILLS OF SALE, BILLS OF SALE ACTS, 1878, 1882, 1890 and 1891. I'lltl.ISIIED AM) SOM) HY WATERLOW BROS. & LAYTON, LIMITED. Settled hy HERBERT REED, Q.C., of the Inner Templo. C'al. No. Bills of Sale 6d. each, or 10s. per quiro. 1 .Absolute Hill i>l' S;ilc (t'onl8r;ii>, on. pt r (|iiirc). 2 Conditional Hill of Salt-, Statutory Form, pajiible l)y ' instalments. 3 Ditto, ditto, i>ayal)k' at a fl.xed date. 10 As.sijj^nmcnt of IJill of .Sale. 17 Bill of Sale by Sheriff of goods taken in execution. 18 AkHPAVIT i)F E.\K( LTin.N OF HiLL OK SALE HY ATTESTING WiT.NK.-^s, 2.S'. per quire. 1!> Ditto, ditto, two attesting Witnesses, 2j». jfcr quire. 20 Akkidavit ok UE-KtGUsTRATiox oK BiLL OF Sale, is. per quirc. 21 Affidavit and Consent kor Order to Enter Satisfaction, is. per quire. 22 Declaration by (Jrantor of Bill of Sale as to his solvency, and that assets assigned not incumbered, 'le. j>er (piirc. 2;j W.vkk.wt op Attoknkv ani> Dkkkasaxce, available as Security for Debt iin:^y s ^\ >\ 4 «:i.^^^^^A;%^ ^i^v \ \\\ \ 'v ^F^ '^r \v ■'^ .V \^\'>