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Breach of Contract › Usury

King & Spalding

New York Court Holds That Usury Is Determined by Total Amount of Loan, Not Amount Actually Advanced

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On February 1, 2024, a New York trial court held that the amount of a loan, and not the amount actually advanced to the borrower, is the relevant measurement to determine if New York’s criminal usury statute applies....more

King & Spalding

Second Circuit Finds No Waiver of Usury Defense in Breach of Loan Agreement Case

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On September 6, 2023, the U.S. Court of Appeals for the Second Circuit vacated and remanded a district court’s decision rejecting borrower defendants’ usury defense on grounds of waiver and collateral estoppel. The lender,...more

King & Spalding

New York Trial Court Holds that Strong Public Policy Commitment to Fair Lending Practices Defeats Loan Agreement’s Choice of Law...

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On September 5, 2023, a New York state court invalidated a loan agreement’s choice of law provision, ruling that the loan agreement was void and depriving the lender of both principal and interest payments. The lender, Samson...more

Freiberger Haber LLP

Is it A Usurious Loan or The Sale of a Receivable?

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By: Jeffrey M. Haber In our last article (here), we examined a choice-of-law provision that, if applied, would violate New York public policy concerning usurious loans. In that case, Virginia law, which does not prohibit...more

Troutman Pepper

Michigan Supreme Court Refuses to Enforce Usury Savings Clause in a Commercial Mortgage

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In Soaring Pine Capital Real Estate & Debt Fund II, LLC v. Park Street Group Realty Services, LLC, the Michigan Supreme Court considered whether a court may enforce a usury savings clause in a mortgage agreement. A usury...more

King & Spalding

New York Court Holds that Violation of Criminal Usury Law May Render Loan Agreement Void ab initio

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On March 15, 2022, the U.S. Court of Appeals for the Second Circuit vacated a district court’s denial of a borrower’s motion to dismiss lender claims. Applying the New York Court of Appeals’ guidance from certified questions,...more

Gray Reed

Could Corporate Convertible Loans be Subject to Criminal Usury Laws in New York?

Gray Reed on

In Adar Bays, LLC v. GeneSYS ID, Inc., the New York Court of Appeals (the “Court”) held that the conversion price in a convertible option could be classified as interest thereby potentially falling under the territory of New...more

Cadwalader, Wickersham & Taft LLP

2019 Year in Review: Securitization Litigation and Regulation

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There were significant developments in 2019 as courts continued to issue important decisions in this space and significant legislation impacting the residential mortgage-backed securities (“RMBS”) market came into effect.  A...more

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