Graf v. Hope Building Corp.
Court of Appeals of New York
171 N.E. 884 (1930)
Hope Building Corporation's (defendant) mortgage with Graf contained an acceleration clause making the entire debt due after 20 days of default; a secretary's mathematical error caused Hope's payment to fall short, and because Hope's president had signed the check before leaving the country on extended vacation with no one else available to correct it, the shortfall went uncured for over 20 days. Graf's estate (plaintiffs) commenced foreclosure under the acceleration clause; the trial and appellate courts dismissed the foreclosure action, and Graf's estate appealed.
Whether, in the absence of fraud, bad faith, or unconscionable conduct, an acceleration clause in a mortgage is enforceable by its terms.