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HAMMELBURGER v. FOURSOME INN

54 N.Y.2d 580 (1981)

Ludwig Hammelburger et al., Appellants, v. Foursome Inn Corp., Respondent, et al., Defendants.

Court of Appeals of the State of New York.

Decided December 23, 1981.

Attorney(s) appearing for the Case

Isaac Anolic for appellants.

Bernard P. McSherry and Christopher J. Allwarden for respondent.

Michael Permut and John J. Boyle for The New York State Land Title Association, amicus curiae.

Judges JONES, WACHTLER and FUCHSBERG concur with Judge MEYER; Chief Judge COOKE concurs in result in a separate opinion in which Judges JASEN and GABRIELLI concur.

MEYER, J.

A mortgagor, who has given an estoppel certificate stating that there are no defenses or offsets to the mortgage or to the bond which the mortgage secures, will be estopped from asserting the defense of criminal usury unless it be shown that (1) the mortgagor executed the estoppel certificate under duress or other basis for invalidation, or (2) the assignee took with knowledge of the criminally usurious...

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