418 Trading Corp. v. Oconefsky

Defendants, husband and wife, desired to purchase a one-family home. Lacking the necessary money to meet the cash payment over the proposed mortgages, they applied to plaintiff for a loan.

Plaintiff is in the business of advancing money on real estate mortgages. The court believes that in order to exact more than the legal interest rate it required the defendants, who operated a small business under the corporate name of Warren Hardware Corporation, to execute instruments whereby it appears that that corporation requested a loan of $4,000, agreed to repay it, and agreed to permit plaintiff to…