In re Title Guarantee & Trust Co.

Appellant is the owner of a five and one-half story apartment house in the Bronx. Petitioner-respondent is the holder of a past due first mortgage on said premises, which mortgage is subject to the mortgage moratorium laws of this State. The question to be determined on this appeal is whether Special Term correctly granted an order directing the owner to pay the sum of $3,000 in reduction of the principal of the mortgage debt based on the existence of a surplus of income over carrying charges in the six months’ period between February 1, 1940, and July 31, 1940. The principal point in dispute…