Real Estate Trust Company v. . Keech
New York Court of Appeals
These are cross appeals from judgment of the General Term of the Supreme Court, in the first judicial department, modifying and affirming as modified a judgment in favor of plaintiff, entered upon a decision of the court at Special Term.
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These are cross appeals from judgment of the General Term of the Supreme Court, in the first judicial department, modifying and affirming as modified a judgment in favor of plaintiff, entered upon a decision of the court at Special Term. (Reported below, 7 Hun, 253.) This action was brought to foreclose a mortgage given to secure a bond for $19,000 The defence ivas usury After the bond became due, it was agreed between plaintiff and defendant that in consideration of the sum of $1,000 paid by defendant, the time of payment should be extended for six months. The sum so paid was to be over and…
1Opinion of the CourtAndrews, J.
The bond and mortgage were valid in their inception, and the usurious agreement for the extension of the time of payment after the debt became due, did not affect their validity. The agreement for forbearance was void, but the original debt and the securities given for it remained in full force. (Blydenburgh on Usury, 97; Swartwout v. Payne, 19 J. R., 294; Merrills v. Law, 9 Cow., 65; Rice v. Welling, 5 Wend., 595; Farmers’ and Mechanics’ Bank v. Joslyn, 37 N. Y., 353.)
The sum paid on the usurious agreement for forbearance will in equity be applied as a payment on the original debt, and the…
2Cases cited3 opinions
- Rice v. Welling & FakeNew York Supreme Court · 1830
- Farmers & Mechanics' Bank of Genesee v. JoslynNew York Court of Appeals · 1867
- Crane v. HubbelNew York Court of Chancery · 1839
3Cited by23 opinions
- London v. ToneyNew York Court of Appeals · 1934
- Van Beil v. FordneySupreme Court of Alabama · 1885
- Bernheimer v. GraySupreme Court of Alabama · 1917
- Bowery Savings Bank v. NirensteinNew York Court of Appeals · 1935
- Church v. . MaloyNew York Court of Appeals · 1877
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