R/S Associates, Appellants v. New York Job Development Authority, Respondent

Summary

The New York Court of Appeals affirmed the Appellate Division's summary judgment, holding that the term “effective cost of funds” in the loan agreement is unambiguous and includes the bond interest rate, issuance costs, and the cost of defaults by other borrowers. Because the contract language is clear, extrinsic evidence was inadmissible and the JDA’s calculation was proper.