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Usury New York

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

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

King & Spalding

Southern District of New York Finds Plaintiffs Precluded from Bringing Affirmative Claims Based on Usury

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On September 20, 2022, the U.S. District Court for the Southern District of New York dismissed affirmative claims based on allegations of usury. In May 2021, the plaintiffs and the defendant entered into a funding agreement...more

King & Spalding

Southern District of New York Finds Usury Claim Subject to Choice-of-Law Provision as a Contractual Claim, Not a Tort Claim

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On June 6, 2022, the U.S. District Court for the Southern District of New York found that a contractual New York choice-of-law provision precluded a borrower-plaintiff from obtaining summary judgment on a usury claim brought...more

Gray Reed

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

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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

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