AD1 HAD NO USE FOR USURY
After the New York County Supreme Court awarded J.G. a judgment against I.M., in the amount $143,803.89, together with statutory interest of 9% thereon, the latter appealed.
Upon its review of the case, the Appellate Division, First Department, thought that the monthly interest, of $3,750 per month payable on the monies received, was effectively a 30% interest rate. And since, under New York law, anything over 25% is considered “criminal usury,” the AD1 was of the view the underlying note was thus void, “ab initio,” and couldn’t be corrected by reducing the interest rate.
As a result, the judgment against I.M. was vacated and the case dismissed.
Now please take note of that!
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