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324 
‘at the rate of ten per cent., twelve and 
a half per cent., or any other rate 
which may be agreed upon, to be paid 
so long as any of the persons shall be 
alive; and, if ‘the borrower die, the 
‘obligation of payment still rests with 
his administrator or executor, or with 
‘the party succeeding ‘to such real pro- 
perty as the borrower shall burden 
with this charge after his death. 
Many such transactions take place ; 
but it is much more common to lend 
‘money at a high rate of interest, which 
-is to be paid so long as the borrower 
‘shall himself live. It very often hap- 
~pens, that the borrower has no security 
_to offer for the payment, which will 
continue in force after his death; on 
which account, there is no use in 
agreeing to any other mode than pay- 
ing a certain sum per annum so long as 
he shall live. ‘The usual mode. of de- 
scription of the rate, is to say, it is an 
annuity of so many years’ purchase. 
Thus, if for 10002. the borrower agree 
to pay 100/. a-year, it is said to be an 
annuity of ten years’ purchase ; if he 
.agree to give 125/., it is an annuity of 
eight years’ purchase; if for 1008/. he 
agree to! give 144/., it is an annuity 
of seven years’ purchase; and, if for 
the same sum he agree to give 168/., it 
is Said to be an annuity of six years’ pur- 
chase. If for 1000/. he give 200/. per 
annum, it is called a five years’ pur- 
chase. This may be about the limits 
of the terms in the annuity market, as 
we have never heard of less than ten 
per cent. for money advanced, nor 
more than twenty, but any interme- 
diate sum may be agreed upon. 
The lender is liable, by the transac- 
tion, to the sudden loss of his property 
by the death of the borrower; but this 
loss is guarded against by insuring the 
sum Jent at an insurance office upon 
the borrower's life; ‘so that, in. the 
event of his death, the money is got 
‘back. It then ceases to be a contin- 
-gency “depending on the life of the 
borrower, and a tlear rate of interest is 
obtained after paying for the risk. 
-Thus, suppose for 1008/7. a nobleman 
binds himself to pay 144/. a-year dur- 
‘ing his life ; if the premium for insuring 
the 1008/. at an insurance-oflice be no 
more than 86J. a-year, there is a‘clear 
‘interest of 108/., whichis more than ten 
percent. It'is thus that the Usury 
Laws are evaded; and a high rate of 
interest is’ obtained, in a’ manner, 
recognised and established by the law 
ofthe land. 
: 1 
On Usurious Annuities. 
‘lease of a house. 
[Nov. 1, 
In speaking of annuities, we have 
hitherto used the common language of 
society, which does, in point of fact, 
describe these matters as ‘they really 
are; annuities, being a borrowing of 
money at a high rate of interest, only 
‘Subject to cease when a certain life or 
certain lives shall terminate ; but in the 
theory of the law, and in the technical 
language of business, an annuity is 
viewed as a kind of property, yielding 
so much a-year, for which a certain 
purchase-money is given, in the same 
manner as if a man purchased a 
The sum to be paid 
annually is called the annual produce 
of the annuity, and not interest. The 
party receives the purchasc-money, 
and binds himself to pay a certain sum 
perannum. The purchase-money does 
indeed differ from principal, or money 
lent on interest, in this, that it cannot 
be reclaimed back under any circum- 
stances, and proceedings ean be iusti- 
tuted merely to recover whatever 
arrears may be due at any particular 
time. The party receiving this purs 
chase-money may, however, at any 
future period, on giving a short notice, 
as agreed upon in the deed, and pay- 
ing back the purchase-money, together 
with all arrears, and a certain fine, such 
as a half-year’s or quarter’s amount, if 
the annual produce, be released from 
the annuity. In plain terms, the bor- 
rower cannot be distressed by being 
‘forced to pay back the money lent him, 
but can only be forced to pay the in- 
terest agreed upon; but, if he have 
money, and chooses to pay off, he has 
a right to do so. 
The money is, in/business language, 
not said to be borrowed, but to ‘be 
raised by way of annuity. ‘Vhe party 
raising the money is called the grantor 
of the annuities, and the’ party ad- 
vancing the money is ‘called the 
grantee. As sometimes twenty people 
all join together to advance the 
money, the annuity is granted to some 
one in trust for these parties, and they 
are said to be the parties beneficially 
interested in the annuity. And their 
names and descriptions are placed ina 
schedule annexed to the deed. 
An insurance being an usual and 
‘almost necessary concomitant of an 
annuity, it follows that the terms must 
depend on the ege of the grantor, as 
the grantee, to be induced tolay out his 
money, must bave a certain elear rate 
per cent. For many years the regular 
terms weieten per cent, and-as much 
in 
fae el Se 
