184 Misc. 53 | N.Y. Sup. Ct. | 1945
Judgment for defendant dismissing the complaint, with costs. The Court of Appeals in Metropolitan Savings Bank v. Tuttle (290 N. Y. 497) has stated that section 1077-cc of the Civil Practice Act was hastily framed and that transposition of language is necessary to arrive at the legislative intent. In the cited case it is stated that by section 1077-cc of the Civil Practice Act it was intended that the status quo as of the date of maturity of a mortgage should continue during the emergency period. In that case the mortgage had expired before the emergency period began, and the rate of interest fixed by the bond was held to be the statutory rate of interest collectible after maturity. In Brighton Operating Corp. v. Morrison (291 N. Y. 6) the mortgage had matured prior to the original emergency period. It was thereafter extended during and matured in the emergency. The Court of Appeals held that after thé expiration of the period fixed by the extension agreement the interest rate agreed upon in that agreement and not the rate in the bond at the time of original maturity was collectible.
In the case at bar there were two extension agreements entered into during the statutory emergency period. The first was dated February 27, 1935, and extended the time for payment of the principal to November 1, 1937. That instrument provided for payment of 6% for a designated time and 5% thereafter until the expiration date fixed in the extension agreement. Thereafter another extension agreement was entered into on December 23, 1940. It provided for installment payments on given dates and final payment on January 1, 1944. Interest was to be paid to December 1, 1943, at 4%% and from December 1, 1943, to January. 1, 1944, at 6%. By virtue of section 1077-g of the Civil Practice Act the provisions of the
Elltan Realty Co. v. Irving Trust Co. (252 App. Div. 882) most nearly resembles the situation presented here. In that case after an agreement of consolidation of two mortgages and extension of time to pay with a provision for 5%%, the parties in 1935 modified such agreement by reducing the interest rate to 4% for all hut eighteen days of the extension term and agreed that in other respects the terms of the bond should be effective. The original rate was held to be payable as the one existing at maturity.