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IN THE COURT OF APPEALS 05/07/96 OF THE STATE OF MISSISSIPPI
NO. 94-CA-01148 COA

JERRY MILLS AND CHARLIE JOE GREEN APPELLANTS v. GOLDOME CREDIT CORPORATION APPELLEE

THIS OPINION IS NOT DESIGNATED FOR PUBLICATION AND MAY NOT BE CITED, PURSUANT TO M.R.A.P. 35-B

TRIAL JUDGE: HON. L. BRELAND HILBURN, JR. COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANTS: AL SHIYOU ATTORNEY FOR APPELLEE: DAVID K. MCGOWAN NATURE OF THE CASE: CONTRACTS/SUMMARY JUDGMENT TRIAL COURT DISPOSITION: SUMMARY JUDGMENT FOR DEFENDANT

BEFORE FRAISER, C.J., McMILLIN, AND PAYNE, JJ. McMILLIN, J., FOR THE COURT: This case is before the Court upon an appeal by the Plaintiffs from the grant of summary judgment by

the trial court in favor of the Defendant, Goldome Credit Corporation. The claims were originally commenced as separate actions, one by Jerry Mills and one by Charlie Joe Green and his wife, Venessa Green. The cases were consolidated in view of the fact the parties agreed that the issues controlling the outcome of both cases were essentially identical. The Mills and the Greens had contracted with Low/Ke Inc., an Alabama corporation, to construct single family residential improvements for them, apparently from stock plans or models offered for sale by Low/Ke. Little can be gleaned from the record regarding Low/Ke or its methods of doing business. We are unable to determine from the scant documents making up the record whether the contracts included the underlying parcel of real estate, or whether the buyers had already obtained title to the unimproved real property from another source. The Greens' contract stated that they were purchasing "Construct the Mobile," and the Mills' contract stated they were purchasing "Construct the Jackson." The purchase price in the contracts, both in the twenty to thirty thousand dollar range, was deferred, to be paid over a twenty-year period in monthly installments with interest at the rate of 13.5% per annum. Both contracts granted a conditional right of prepayment to the purchasers, which we quote as follows: PREPAYMENT. If this debt is paid in full before the final scheduled payment date, Buyer may make such payment without penalty except that resulting from the application of the Rule of 78's less 20 days and Seller shall refund or credit Buyer with that portion of the Finance Charge which shall be determined under the Rule of 78's less 20 days computed to the nearest scheduled payment date. Shortly after entering into the contracts, Low/Ke assigned them both to the Appellee, Goldome Credit Corporation (the contracts recite that the assignee is Colonial Financial Service, Inc.; however, counsel for Goldome informs us that these are the same entities, the company having undergone a legal name change.) Both borrowers prepaid their contracts after a few years (approximately eight years for the Greens and seven years for the Mills). It is undisputed that, by computing the contract payoff figure under the Rule of 78's rather than by the actuarial method, the actuarial yield to Goldome on the Green contract was 15.85% and on the Mills contract was 16.19%. The Greens and the Mills both allege that the maximum interest rate allowable by law on the contracts was established by section 75-17-1(4), which pertained to "any loan, mortgage, or advance which is secured by a lien on residential real property . . . ." Miss. Code Ann.

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