Legal Opinion
Lloyd Capital Corp. v. Pat Henchar, Inc.
New York Court of Appeals
Decided October 22, 1992PublishedCited by 73 opinions
1Opinion of the Court
OPINION OF THE COURT
Kaye, J.
Is a loan agreement that violated Federal Small Business Administration (SBA) regulations unenforceable under New York law? In the circumstances presented, we agree with the Appellate Division that the borrowers’ defense of illegality must be rejected and the debt enforced.
In September 1982, plaintiff, an investment company at that time licensed by the SBA, loaned $64,000 to defendant Pat Henchar, Inc. (PHI). The loan was personally guaranteed by defendant Patricia Henchar and secured by a mortgage on her home. As the loan bore an annual interest rate of 20.75% and…
2Cases cited9 opinions
- Kaiser Steel Corp. v. MullinsSupreme Court of the United States · 1982
- Kelly v. KosugaSupreme Court of the United States · 1959
- Continental Wall Paper Co. v. Louis Voight & Sons Co.Supreme Court of the United States · 1909
- John E. Rosasco Creameries, Inc. v. CohenNew York Court of Appeals · 1937
- Seidel v. 18 East 17th Street Owners, Inc.New York Court of Appeals · 1992
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3Cited by73 opinions
- Hoosier Energy Rural Electric Cooperative, Inc. v. John Hancock Life InsuranceCourt of Appeals for the Seventh Circuit · 2009
- Denburg v. Flattau & KlimplNew York Court of Appeals · 1993
- Benjamin v. KoeppelNew York Court of Appeals · 1995
- Dornberger v. Metropolitan Life InsuranceDistrict Court, S.D. New York · 1997
- Stephens v. American Home Assurance Co.District Court, S.D. New York · 1993
68 more not listed; retrieve them via the Exa API.