On July 8, 2026, the Second Department issued a decision in LF Collateral SPV IV, LLC v. Citadel NY, Inc., 2026 NY Slip Op. 04288, holding that a corporation cannot assert a defense of civil usury, explaining:
A corporation or a limited liability company (hereinafter LLC), or an individual guarantor of such an entity’s debt, may not assert the defense of civil usury. Although a corporation or LLC, or a guarantor of such an entity’s debt, may assert the defense of criminal usury, here, the defendants failed to raise a triable issue of fact as to whether the loan was criminally usurious. Further, contrary to the defendants’ contention, the plaintiff can recover against Imranova, as the guarantor, because the guaranty transferred with the assignment of the note and the mortgage to the plaintiff.
(Internal citations omitted).