On July 16, 2024, Justice Ruchelsman of the Kings County Commercial Division issued a decision in RDM Capital Funding v. Stellar Beach Rentals LLC, 2024 NY Slip Op. 32482(U), holding that a merchant cash advance agreement was not a loan, and thus was not subject to the usury laws . . . Continue reading Merchant Cash Advance Agreement Not a Loan, and Thus Not Subject to Usury Laws
On June 17, 2024, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Manna Capital Solutions LLC v. W & D Consultants Corp., 2024 NY Slip Op. 32061(U), holding that a side letter granting a lender part ownership of the borrower did not make the related loan usurious . . . Continue reading Side Letter Granting Lender Part Ownership of the Borrower Did Not Make the Related Loan Usurious
On March 6, 2024, the Second Department issued a decision in Alleon Capital Partners v. Choudhry, 2024 NY Slip Op. 01165, holding that the usury law did not apply to a loan with a principal amount over $2.5 million . . . Continue reading Usury Law Not Applied to Loan with Over $2.5 Million Principal Amount
On February 20, 2024, Justice Whelan of the Suffolk County Commercial Division issued a decision in GEM Funding, LLC v. Z-Rite Plumbing & Heating Corp., 2024 NY Slip Op. 50171(U), holding that the usury laws do not apply to merchant cash advance agreements . . . Continue reading Usury Laws Do Not Apply to Merchant Cash Advance
On February 1, 2024, Justice Masley of the New York County Commercial Division issued a decision in TS Falcon I, LLC v. Golden Mtn. Fin. Corp., 2024 NY Slip Op. 30386(U), holding that a commitment to make a loan for over $2.5 million is not subject to the criminal usury law . . . . Continue reading Loan Commitment for Over $2.5 Million Not Subject to Criminal Usury Law
On September 15, 2023, Justice Borrok of the New York County Commercial Division issued a decision in People v. Richmond Capital Group LLC, 2023 NY Slip Op. 50975(U), holding that agreements were usurious loans, not merchant cash advance agreements . . . Continue reading Agreements Found to be Usurious Loans, Not Merchant Cash Advance Agreements
On July 25, 2023, Justice Driscoll of the Nassau County Commercial Division issued a decision in Singh v. LCF Group, Inc., 2023 NY Slip Op. 33014(U), rejecting a claim that a merchant cash advance agreement was an usurious loan . . . Continue reading Court Rejects Claim that Merchant Cash Advance Agreement Was an Usurious Loan
On September 5, 2023, Justice Doyle of the 7th Judicial District Commercial Division issued a decision in Samson Lending LLC v. Greenfield Mgt. LLC, 2023 NY Slip Op. 23267, refusing to enforce a choice of law provision that would have saved a contract that was usurious under New York law . . . Continue reading Court Refuses to Enforce Choice of Law Provision That Would Have Saved Contract that was Usurious Under New York Law
On April 26, 2023, the Second Department issued a decision in Bono v. Stim & Warmuth, P.C., 2023 NY Slip Op. 02099, holding that a criminal usury defense does not apply if the excessive rate applies only after default . . . Continue reading Criminal Usury Defense Does Not Exist if Excessive Rate Applies Only After Default
On February 28, 2023, Justice Borrok of the New York County Commercial Division issued a decision in Spin Capital, LLC v. Golden Foothill Ins. Servs., LLC, 2023 NY Slip Op. 30594(U), declining to recharacterize purchase agreements as loans for purposes of usury . . . Continue reading Court Declines to Recharacterize Purchase Agreements as Loans
