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MORSE v. HOWARD PARK CORP.

50 Misc.2d 834 (1966)

Charles J. Morse et al., as Trustees of the Central States, Southeast and Southwest Areas Pension Fund, Plaintiffs, v. Howard Park Corporation et al., Defendants.

Supreme Court, Special Term, Queens County.

June 21, 1966

Attorney(s) appearing for the Case

Katz & Wolchok (Jerome S. Zurkow of counsel), for plaintiffs. Permut & Permut (Michael Permut of counsel), for Howard Park Corporation and others, defendants. Pratt & Pratt (E. Robert Pratt of counsel), for John P. Cava and another, defendants.

CHARLES MARGETT, J.

This trial raises a question fundamental to the law of mortgages. That question is: Did the mortgagee, prior to executing the mortgage under the circumstances of this case, have the duty to investigate the credit structure of the mortgagor's tenant in order to ascertain that the tenant's bondholders would not be prejudiced by the mortgage?

This action to foreclose certain consolidated...

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