2006 New York Code - Enforceability Of Compound Interest.

 
    § 5-527. Enforceability  of  compound  interest.    1. A loan or other
  agreement  providing  for  compound  interest   shall   be   enforceable
  notwithstanding the date that such loan or other agreement providing for
  such compound interest shall have been executed; provided, however, that
  such  compound interest shall begin to accrue and become due and payable
  on the later to  occur  of  (a)  June  twenty-fourth,  nineteen  hundred
  eighty-nine  or  (b)  the  date that any obligation to pay such compound
  interest may have arisen, including, but not limited to, the date of any
  default or event of default under such loan or  other  agreement.    For
  purposes  of  this  subdivision, the term "compound interest" shall mean
  the accruing of interest upon unpaid interest  irrespective  of  whether
  such unpaid interest is added to the principal debt.
    2.  The provisions of this section shall not be applicable to any loan
  or other financing agreement where the original principal debt is in  an
  amount  of two hundred fifty thousand dollars or less, or to any loan or
  other financing agreement secured primarily  by  a  one  or  two  family
  owner-occupied  residence.  For  purposes  of  this subdivision the term
  "residence" shall include a lessee's interest  in  a  proprietary  lease
  granted by a cooperative housing corporation.
    3.  Notwithstanding the provisions of subdivision two of this section,
  nothing in this section shall affect the maximum rate of interest  which
  may be charged, taken or received as provided by law, or be construed to
  limit,  impair or otherwise affect any loan or other agreement which is,
  or would be, enforceable without reference to  this  section,  including
  but  not  limited  to an agreement made pursuant to section six-f of the
  banking law.