Progressive Welfare Assoc., Inc. v. Morduchay

The plaintiff is a mutual association, whose principal purpose is to accumulate the savings of its members and make loans to them. Aron Morduchay, who will be referred to herein as the defendant, was a member of the association. On February 16, 1932, after his application had been approved, the plaintiff made a loan of $5,000 to him, and received as evidence of the debt a joint and several note executed by himself and his wife as comakers.

It is urged that the loan was usurious and this conclusion is inevitable for several reasons, one of which will be ample to discuss.

Section 4732 of the…