Flushing National Bank v. Municipal Assistance Corp.
New York Court of Appeals
40 N.Y.2d 731, 358 N.E.2d 848 (1976)
The city of New York (the city) (defendant) had amassed an enormous amount of debt by issuing municipal notes. The city was unable to pay the notes as they became due. Because of the city’s fiscal distress, the New York state legislature enacted the New York City Emergency Moratorium Act (the act). The act imposed a three-year moratorium on judicial actions to enforce the city’s outstanding notes. Hence, the act allowed the city to avoid paying notes as they became due. Flushing National Bank (the bank) (plaintiff) was a holder of the city’s notes. The bank brought suit, contending that the act was unconstitutional. The appellate division found that the act was constitutional. The bank appealed.
Rule of Law
Holding and Reasoning (Breitel, C.J.)
Dissent (Cooke, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 709,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 709,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,500 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.