943 Lexington Avenue, Inc. v. Niarchos

The majority views this surcharge as "interest,” which they have determined is "confiscatory in nature and therefore unenforceable” due to public policy against usury and the decision in Vernon Manor Co-op. Apts., Section I v Salatino (15 Misc 2d 491) is cited as authority.

I find no reason for reference to the usury statute and it does appear that the circumstances in Vernon (supra) are distinguishable. The issue now before us — whether this surcharge for delinquent payment of rent is valid — was not an issue in the Vernon case. In that case (p 493), the board of directors adopted a…