R. & R. Mohring Enterprises, Inc. (the company) (defendant) mortgaged its real property to Ron King Corporation (King) (plaintiff) in return for a commercial loan that would mature one year later. King charged a 2-percent ("two points") loan-origination fee, and the loan carried an 18-percent interest rate, which in case of default or if the loan remained unpaid by the maturity date would increase to 24 percent. The company never met its obligation to pay off the loan in monthly installments. King declared the company in default, and initiated foreclosure proceedings. In defense, the company argued that the loan was void and unenforceable, because the 24-percent default interest rate, when combined with the two-point loan origination fee, produced an effective interest rate of 26 percent, which exceeded the 25-percent maximum interest rate set by New York's usury statute.