Gottesfeld v. Kaminski

The opinion of the court was delivered by

GAULKIN, J.A.D.

Alfred and Sophie Gottesfeld brought this action to foreclose a second mortgage given to secure payment of a $15,000 note executed by John G. Kaminski as president of Next Flight Out, Inc. (NFO), and guaranteed by Kaminski individually. Kaminski answered that the mortgage was in violation of the Secondary Mortgage Loan Act (SMLA), N.J.S.A. 17:llA-34 et seq., and of the usury laws, N.J.S.A. 31:1-1 et seq. In a letter opinion issued following a plenary hearing, the trial judge concluded that (1) the SMLA did not apply to the transaction,…