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Crawford v. Carlton

Appellate Division of the Supreme Court of New York, First Department
Dec 6, 1979
73 A.D.2d 530 (N.Y. App. Div. 1979)

Opinion

December 6, 1979


Order, Supreme Court, New York County, entered September 7, 1978, granting plaintiff's motion for summary judgment in lieu of complaint, unanimously reversed, on the law, and summary judgment granted to the defendant dismissing the complaint, without costs and disbursements. The promissory demand note dated July 29, 1976, in the principal amount of $50,000, with interest at the rate of 10% per annum, is patently usurious and, therefore, void under section 5-511 Gen. Oblig. of the General Obligations Law. Section 5-519 Gen. Oblig. of the General Obligations Law "was never intended and cannot be construed to emasculate [General Business Law, § 373 (now General Obligations Law, § 5-511)]" (Bowery Sav. Bank v. Nirenstein, 269 N.Y. 259, 264). When a note reserves to the lender an illegal rate of interest, that will satisfy the borrower's burden of proving a usurious loan (Matter of Dane, 55 A.D.2d 224).

Concur — Fein, J.P., Sandler, Sullivan, Bloom and Lupiano, JJ.


Summaries of

Crawford v. Carlton

Appellate Division of the Supreme Court of New York, First Department
Dec 6, 1979
73 A.D.2d 530 (N.Y. App. Div. 1979)
Case details for

Crawford v. Carlton

Case Details

Full title:GEORGE CRAWFORD, JR., Respondent, v. WILLIAM CARLTON, Appellant

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Dec 6, 1979

Citations

73 A.D.2d 530 (N.Y. App. Div. 1979)

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