Beach Associates, Inc. v. Fauser

The plaintiff borrowers brought an action in the Superior Court pursuant to G. L. c. 271, § 49(c), requesting that the judge declare void a loan which they obtained from the defendant lenders. The defendants extended this loan at a rate of interest which exceeded the limit established by G. L. c. 271, § 49(a). The judge declined to void the loan and entered a judgment reforming the mortgage note by reducing the stated interest rate to the maximum permissible limit. The plaintiffs argue that the loan was void and that the judge was powerless to reform the mortgage note. We affirm the judgment.

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