Sec. 195. Amount Of Commissions On Loan

The question of the amount of the commissions is taken up later.45 There is also given in Part VII of the present volume the rates charged in the larger cities.46 It may be also, that the amounts of commissions are regulated by statute or ordinance in particular localities, and the local statutes and ordinances should be consulted.

In New York, for instance, a statute formerly regulated the subject with respect to loans. In this state, prior to April 27, 1895, the amount of commissions on loans was restricted to fifty cents on each $100, or, in other words, one-half of one per cent, upon the amount of the loan. Although the statute was not generally observed in real estate loan matters, yet it was enforced if insisted on by the borrower.47 Under this statute it was said that "it may be allowable to pay for extra services not usually necessary in procuring loans, in addition to the prescribed brokerage; but it should be separated so that it may be seen whether the compensation is reasonable, or only a cover for demanding a larger commission."48

By Chapter 467 of the Laws of 1895, loans on real estate security were excepted from the statute.49

44 Finck v. Pierce. 53 Misc. 554 (N. Y. 1907).

45 See Ch. XXII infra.

46 See Forms 1-16 infra, Ch. XXXVIII.

47 Anderson v. Dwver, 61 N. Y. Suppl. 1114 (1699); aff'd, 63 N. Y. Suppl. 201 (1900): 30 Misc. (N. Y.) 793.

48 Cook v. Phillips, 56 N. Y. 310 (1874).

49 Vol. 1. Cummings & Gilbert's General Laws. Ed. of 1901. p. 430: now Sec. 380 of the General Business Law, which is Ch. 20 of the Cons. Laws of New York.