2006 New York Code - Rate Of Interest; Effect Of Usury.

 
    § 173.  Rate  of interest; effect of usury. 1. No private banker shall
  take, receive, reserve or charge on any loan or discount made,  or  upon
  any  note,  bill  of  exchange  or  other  evidence of debt, interest as
  computed pursuant to this section, at  a  rate  greater  than  the  rate
  prescribed  by  the banking board pursuant to section fourteen-a of this
  chapter, or, if no rate has been  so  prescribed,  six  per  centum  per
  annum,  or  two  dollars  if  the interest so computed is less than that
  amount.  Such interest may be taken in advance, reckoning the  days  for
  which  the  note,  bill  or  evidence  of debt has to run. The knowingly
  taking, receiving, reserving or charging  a  greater  rate  of  interest
  shall be held and adjudged a forfeiture of the entire interest which the
  note,  bill  of  exchange  or other evidence of debt carries with it, or
  which has been agreed to be paid thereon. If a greater rate of  interest
  has  been  paid, the person paying the same or his legal representatives
  may recover twice the entire amount of the interest thus paid  from  the
  private  banker.  The  purchase, discount or sale of a bona fide bill of
  exchange, note or other evidence of debt payable at another  place  than
  the  place  of  such  purchase,  discount  or  sale at not more than the
  current rate of exchange for sight draft, or a reasonable charge for the
  collection of the same, in  addition  to  the  interest,  shall  not  be
  considered  interest  for  the purpose of any law regulating the maximum
  rate of interest which may be charged, taken or received.
    Anything   contained   in   this   subdivision   to    the    contrary
  notwithstanding,  the  charging  of  interest  or  discount on a loan or
  discount at an office of a private banker located outside of the  states
  of  the  United States of America and the District of Columbia at a rate
  allowed by the laws of the  country,  territory,  dependency,  province,
  dominion,  insular  possession or other political subdivision where such
  office is located, or the acquisition by a  private  banker  of  a  part
  interest  or  the  entire interest in any loan or discount heretofore or
  hereafter made  by  a  bank  or  trust  company  or  any  other  banking
  institution  at  an  office  located outside of the states of the United
  States of America and the District of Columbia, shall not be a violation
  of this section.
    1-a.  Anything   contained   in   this   section   to   the   contrary
  notwithstanding,   any   private  banker,  in  purchasing  or  otherwise
  acquiring, any note or other evidence of debt, which has arisen  out  of
  the  sale  of personal property or the performance of services on credit
  and which is repayable in instalments from the payee or holder  thereof,
  may  take, receive, reserve or charge an amount not exceeding twelve per
  centum per annum, computed pursuant to this section on unpaid  principal
  balances, or the sum of ten dollars, whichever is the greater; provided,
  however,  that  nothing  contained in this subdivision shall authorize a
  private banker to take, receive, reserve or charge upon the purchase  or
  other  acquisition  of any two or more notes or other evidences of debt,
  arising out of the same transaction, an amount greater than such private
  banker would be entitled to take, receive, reserve or charge if  all  of
  such  obligations constituted a single obligation. In the event that the
  private banker insures, under a group insurance policy, the life of  the
  person primarily liable on any such obligation, or in the event that the
  private banker requires insurance on personal property securing any such
  obligation, the actual cost of such insurance may be added to the amount
  which  such private banker may take, receive, reserve or charge upon the
  purchase or other acquisition of such obligation. This subdivision shall
  not be in derogation of any powers, rights or  privileges  possessed  by
  any private banker prior to the effective date this subdivision.
    2.  Upon  advances  of money repayable on demand to an amount not less
  than five thousand  dollars  made  upon  warehouse  receipts,  bills  of
  lading,  certificates  of  stock,  certificates  of  deposit,  bills  of
  exchange, bonds or other negotiable instruments, pledged  as  collateral
  security for such repayment, a private banker may receive or contract to
  receive  and  collect  as  compensation for making such advances any sum
  which may be agreed upon by the parties to such transaction.
    3. Upon an advance of money, whether or not repayable on demand, to an
  amount not less than five thousand dollars, made upon documents of title
  within article seven  of  the  uniform  commercial  code  or  negotiable
  instruments  within  article  three  or  article  eight  of  the uniform
  commercial code pledged as collateral security for such  repayment,  any
  private  banker  may  receive  or  contract  to  receive  and collect as
  compensation for making such advance any sum which may be agreed upon by
  the parties to such transaction; provided that such advance is (a) to or
  for any partner of  a  firm  which  is  a  member  firm  of  a  national
  securities   exchange   registered  with  the  securities  and  exchange
  commission  as  a  national  securities  exchange  under   the   federal
  securities  exchange  act of 1934, as amended, to enable such partner to
  make a contribution of capital to such firm or to purchase stock  of  an
  affiliated  corporation  of  such  firm,  provided  that such partner is
  actively engaged in the business of such  firm  and  devotes  the  major
  portion  of his time thereto, or (b) to or for any person who is or will
  become a holder of stock of a corporation which is a member  corporation
  of such a national securities exchange to enable such person to purchase
  stock  of  such  corporation  or  to  purchase  stock  of  an affiliated
  corporation of such corporation, provided that such person  is  actively
  engaged  in  the  business  of  such  corporation  and devotes the major
  portion of his time thereto.