Justice Helen Freedman of the First Department wrote that while the loan agreement's stated interest rate was only 12 percent, it allowed the lender to keep the deposit contingent on events outside the borrower's control, meaning the deposit should be considered interest under New York's usury law.
$200,000 Deposit Lifts Rate Past Threshold for Criminal Usury, Appellate Panel Concludes
New York Law Journal
March 8, 2013
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