Opinion
May 5, 1965
Samuel I. Sloane for petitioner.
Morris Rochman for claimants.
Pursuant to section 47 of the Suffolk County Improvement Act (L. 1927, ch. 190, as amd.) the court held a hearing on objections to the tentative decree.
The only objection which the court deems worthy of comment is claimants' position that they are entitled to interest at the rate of 6%, instead of 4%, from the vesting date.
Section 13 of the Suffolk County Improvement Act provides that "interest at the legal rate" shall be awarded from the date of vesting of title to the date of the final decree. Claimants urge that the legal interest rate in this State is 6% and that the special statute, that is the Suffolk County Improvement Act, prevails over section 3-a Gen. Mun. of the General Municipal Law. The court does not agree with claimants.
Subdivision 1 of section 5-501 Gen. Oblig. of the General Obligations Law fixes 6% as the legal rate of interest "except as otherwise provided by law". Other provision is made by subdivision 2 of section 3-a Gen. Mun. of the General Municipal Law, which provides that the rate of interest to be paid by municipal corporations on condemnation awards "shall not exceed four per centum per annum". In this court's opinion, the words "legal rate" as used in the Improvement Act mean the rate of interest which a municipal corporation governed by it may be charged. That rate is fixed at a sum not to exceed 4%.
After considering the objections the court determines that there is no need for any corrections or alterations to be made in the tentative decree and the award is hereby confirmed.