Summary
In 800 Union Street Corp. v. Bookben Realty Corp., 302 N.Y. 926, 100 N.E.2d 188 (1951), a provision in a lease authorizing a landlord to use the security money to pay down the mortgage on the leased premises was deemed not to be within the purview of Section 233 even though there was no provision for repayment. The Court, however, implied a duty to repay the loan into a statutory segregated trust within a reasonable time which was to be held as security for the conclusion of the tenant's proper performance of the lease obligations.
Summary of this case from In re Amphitheatre, IncorporatedOpinion
Argued May 25, 1951
Decided July 11, 1951
Appeal from the Supreme Court, Appellate Division, Second Department, PETER P. SMITH, Off. Ref.
Max M. Bernstein and Edward Ingram for appellant.
Emanuel Harris, Francis M. Verrilli and Max E. Greenberg for respondent.
Judgment affirmed, with costs; no opinion.
Concur: LOUGHRAN, Ch. J., LEWIS, CONWAY, DESMOND, DYE, FULD and FROESSEL, JJ.