Jefferson Title & Mortgage Corp. v. Dempsey

This action is brought to foreclose a mortgage of $30,000 upon property situated in Bronx county. The defendants admit the existence of the mortgage and defaults in payments but set up an affirmative defense of usury. The usury claimed is that the expenses charged were merely a cloak for the obtaining of a greater interest than that permitted by the General Business Law (§ 370 et seq.). The basis of this claim is found in the fact that the plaintiff charged six per cent for expenses, while the defendants contend that three per cent would constitute the full lawful charge for such expenses. As…