Merit Finance Company v. Voorhies
Also decided on this docket: La. Ct. App. 1st Cir., January 6, 1969 217 So. 2d 754; La. Ct. App. 1st Cir., February 17, 1950 44 So. 2d 497; La. Ct. App. 1st Cir., November 8, 1928 120 So. 93; La., April 15, 1872 24 La. Ann. 214
Merit Finance Company v. Voorhies, 241 So. 2d 90 (La. Ct. App. 1st Cir. 1970).
Cited by
- Budget Plan of Baton Rouge, Inc. v. Talbert 276 So. 2d 297 La. 1973
- Thrift Funds of Baton Rouge, Inc. v. Jones 259 So. 2d 587 La. Ct. App. 1st Cir. 1971
Authorities cited
Identified automatically; this list may not be exhaustive.
- Berger v. DeSalvo 156 So. 2d 323
- Consolidated Loans, Inc. v. Smith 190 So. 2d 522
Opinion text
MILLER, Judge. When the holder of a promissory note accelerates the maturity thereof, causing the unpaid balance to be due and owing, the holder must make a pro-rata rebate of the unearned capitalized interest contained in that accelerated amount. Berger v. DeSalvo, 156 So.2d 323 (La.App. 4 Cir. 1963). This rule should apply where the finance company refinances a loan. The rule of Consolidated Loans, Inc. v. Smith, 190 So.2d 522 (La.App. 1 Cir. 1966) relied on by the majority should not be extended. There the maker voluntarily made a cash prepayment of the entire unpaid balance due and owing. No donative intent has been shown on the part of the borrower when he refinances his loan. It is unrealistic to conclude that by refinancing, the borrower intended to donate unearned interest and advance insurance payments to the finance company. I find this unjust enrichment at the expense of a man, representative of a class of many, who can ill afford to support such practices. I would grant the application for rehearing.