Nature of the Case
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Facts
Duncan (D) conducted business by installing siding on homes. D would obtain a contract and install the siding and liquidate any first mortgage on the property so that he could be secured in first place and refinance the amounts due at higher rates. On Derico's (P) home, P signed a contract for siding at $6,381 and liquidated a first mortgage of $7,619 @ 8% for a new loan of $14,000 at 12.78%. This was in direct violation of a consumer loan statute in that D did not have a license to make the loans under section 5-19-22(a). A question of law regarding whether the contract was void was certified to the Alabama Supreme Court.
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