In re Charles Street African Methodist Episcopal Church

MEMORANDUM OF DECISION ON DEBTOR’S OBJECTION TO PROOF OF CLAIM OF ONEUNITED BANK

FRANK J. BAILEY, Bankruptcy Judge.

The matter before the Court is the Objection of the Debtor, Charles Street African Methodist Episcopal Church of Boston (“CSAME”), to proof of claim no. 10 (the “Claim”), filed by OneUnited Bank (“OneUnited”). CSAME objects to the default interest portion of the claim, arguing that it is amounts to an unenforceable penalty. After an evidentiary hearing1 and on the basis of the findings and rulings set forth below, I will sustain the objection by disallowing interest in excess of…