Court Opinion

ID: 9455164
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:13:08.277008+00
Date Added: 2024-06-11T17:34:29.054663
License: Public Domain

HAYS, Circuit Judge
(dissenting in part):
I feel constrained to dissent from that part of the majority opinion which holds that the trustee may recover for usury in spite of the one year limitation period prescribed by the New York statute for actions based on usury. The trustee is expressly authorized by Section 70(a) (6) of the Bankruptcy Act, 11 U.S.C. § 110(a) (6) to sue on “rights of action arising upon * * * usury.” That section “equates the right of the trustee with that of the bankrupt.” Austrian v. Williams, 198 F.2d 697, 701 (2d Cir.), cert. denied, 344 U.S. 909, 73 S.Ct. 328, 97 L.Ed. 701 (1952). The “right of the bankrupt” to bring an action based on usury was barred by the New York statute of limitations applicable to usury at the time the bankruptcy petition was filed.
I would affirm the decision of the trial court in all respects.