Monthly Archives: February 2017

In Three Separate Decisions, New York Courts Find Sale of Future Receivables Not Subject to Usury Laws

In three nearly identical cases, a small business funder entered into an agreement with three separate businesses to purchase a portion of the businesses’ future receivables for an upfront lump sum. In exchange for the lump sum payment, the funder was … Continue reading

Posted in Civil Usury, Criminal Usury, Merchant Cash Advance, New York, Recharacterization, State Court | Comments Off on In Three Separate Decisions, New York Courts Find Sale of Future Receivables Not Subject to Usury Laws

Convertible Note with 150% Default Penalty Not Usurious

A creditor purchased four convertible promissory notes from a company. The notes provided that they could be converted to unrestricted common stock of the company at a 45% discount. Upon an event of default, the notes carried a penalty that required a payment from the … Continue reading

Posted in Criminal Usury, Federal Court, Interest Calculation, New York | Comments Off on Convertible Note with 150% Default Penalty Not Usurious