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, explaining:
[T]he Agreement is not void under GOL §5-501 (6)(b)–New York’s criminal usury laws-which applies to loans under $2.5 million. Here, the amount due is $3.5 million, including legal fees which plaintiff is permitted to add to the amount due. In any case, though the principal amount loaned to date is under $2.5 million, plaintiff agreed to loan up to $5 million. Finally, these
(Internal quotations and citations omitted).
highly sophisticated and well-represented parties, who negotiated for 60 days, are not the intended beneficiaries of this provision – borrowers who need or deserve protection.