The Sixth Appellate District reversed a judgment. The court held that individual investors in promissory notes deemed to be usurious were obligated to pay back all interest payments they received regardless of whether or not their share of the interest actually exceeded the ten percent allowable under state law.
Creative Ventures, LLC and Arden 2002, LLC borrowed nearly $3 million from Jim Ward & Associates (JWA) to finance two real property development projects. The loans were evidenced by four promissory notes secured by deeds of trust on real property. JWA assigned fractional interests in the notes to 54 separate investors.
