Adar Bays, LLC v. GeneSYS ID, Inc., No. 18-3023 (2d Cir. 2020)
Annotate this CaseThe Second Circuit certified two questions to the New York Court of Appeals: 1) Whether a stock conversion option that permits a lender, in its sole discretion, to convert any outstanding balance to shares of stock at a fixed discount should be treated as interest for the purpose of determining whether the transaction violates N.Y. Penal Law 190.40, the criminal usury law. 2) If the interest charged on a loan is determined to be criminally usurious under N.Y. Penal Law 190.40, whether the contract is void ab initio pursuant to N.Y. Gen. Oblig. Law 5-511.
The court issued a subsequent related opinion or order on March 15, 2022.
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