Karp v. Harlem Business Protective Corp.

Lewis, David C,, J.

The defendant is a corporation organized under the Stock Corporation Law of the State of New York. It has been conducting a business of loaning money to its so-called shareholders, requiring the deposit of certain sums by its members as security, with an agreement to return the shareholders’ money upon severing the membership.

The activities or transactions of the defendant have fallen within the pale of a business forbidden to a stock corporation, and have brought it within the field expressly reserved for banking corporations. (Banking Law, §§ 140, 453.)

What the law…