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BEAL v. FIRST FED. SAV. & LOAN ASSO. OF MADISON

No. 76-463.

90 Wis.2d 171 (1979)

279 N.W.2d 693

BEAL, and husband, Plaintiffs-Appellants, v. FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF MADISON, Defendant-Respondent.

Supreme Court of Wisconsin.

Decided June 12, 1979.

Attorney(s) appearing for the Case

For the appellants there were briefs and oral argument by James N. Youngerman of Madison.

For the respondent there was a brief by Frank J. Bucaida and Axley, Brynelson, Herrick & Gehl of Madison, and oral argument by Mr. Bucaida.

HEFFERNAN, J.

The principal question posed here is whether a federal savings and loan association which has extended a loan for the maximum thirty-year period and determined by mutual agreement with the borrower what the monthly payments will be can, by the activation of an interest-escalation clause, increase the amount of money to be allocated for the payment of interest out of each monthly payment for the early years of the loan and thereafter sharply reduce the...

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