Commercial Funding Corp. v. Melroy Const. Co.

The mortgage sought to be foreclosed in this suit was given by the defendant Melroy Construction Company. The only answering defendant is Florence R. Chernoff, a subsequent mortgagee who holds two mortgages, one for $11,000 and one for $2,300, both of which are expressly subject to the mortgage now being foreclosed. By her answer she sets up the defense of usury. The motion is to strike the answer and the availability of the defense of usury to this subsequent mortgagee-defendant is the only question which need now be decided. It is conceded that, as the mortgagor is a corporation, the…