418 Trading Corp. v. Oconefsky

• Decision Date: 02 April 1964
• Citation: 418 Trading Corp. v. Oconefsky, 249 N.Y.S.2d 876, 14 N.Y.2d 676, 198 N.E.2d 907 (N.Y. 1964)
• Parties: , 198 N.E.2d 907 418 TRADING CORP., Appellant, v. Pearl OCONEFSKY et al., Respondents, and Cambridge Factors, a limited partnership, et al., Defendants.
• Court: New York Court of Appeals Court of Appeals

Page 876

249 N.Y.S.2d 876

14 N.Y.2d 676, 198 N.E.2d 907

418 TRADING CORP., Appellant, v.Pearl OCONEFSKY et al., Respondents, and Cambridge Factors a limited partnership, et al., Defendants.

Court of Appeals of New York.

April 2, 1964.

Appeal from Supreme Court, Appellate Division, First Department, 19 A.D.2d 593, 240 N.Y.S.2d 956.

Action was brought to foreclose a mortgage.The defendants interposed the defense of usury.The defendant husband and defendant wife, who desired to purchase a one-family home, applied to the plaintiff for a loan.The plaintiff, in order to exact more than the legal interest rate, required to the defendants, who operated a small business under a corporate name, to execute instruments whereby it appeared that the corporation requested a loan of $4,000, agreed to repay it and agreed to permit plaintiff to pay therefrom $1,000 for brokerage commission and other expenses in connection with the making of the loan.The plaintiff also procured the signature of the individual defendants to a guarantee of the payment of $4,000 and obtained the signature of the defendant wife to a bond for that amount and as collateral security her signature to a mortgage covering the home.

The Supreme Court, Special Term, Bronx County, Charles A. Loreto, J., 37 Misc.2d 745, 734 N.Y.S.2d 747, entered a...