Monthly Archives: January 2017

Despite Criminal Usury Claim, Court Compels Arbitration

A New York resident sued an alternative small business lender for, among other counts, criminal usury related to small business financing that the resident’s business had received and that the resident had agreed to guarantee. The agreement included a provision that required that “all … Continue reading

Posted in Arbitration, Criminal Usury, New York, State Court | Comments Off on Despite Criminal Usury Claim, Court Compels Arbitration

Another New York Court Upholds Bar on Corporate Usury Defense

A welding company sold a portion of its future business receivables to an MCA provider for a lump sum purchase price. When the welding company failed to remit the purchased sale proceeds as required by the parties’ agreement, the MCA provider filed … Continue reading

Posted in Merchant Cash Advance, New York, Sale vs. Loan, State Court | Comments Off on Another New York Court Upholds Bar on Corporate Usury Defense

New York Court Enforces Choice of Law Provision Despite State Usury Law

An alternative small business lender provided a loan to a business. The business later filed suit against the lender in an attempt to void the loan agreement. The business alleged that the agreement violated New York’s criminal usury statute.  The … Continue reading

Posted in Choice-of-Law, Criminal Usury, New York, State Court | Comments Off on New York Court Enforces Choice of Law Provision Despite State Usury Law

New York Court Upholds Bar on Use of Usury Defense by Corporate Entity

A computer consultant asked a client for a loan. The client obliged but required a confession of judgment be included in the loan contract along with an increased interest rate in the event of default. The consultant agreed. The loan, … Continue reading

Posted in Civil Usury, New York, State Court | Comments Off on New York Court Upholds Bar on Use of Usury Defense by Corporate Entity