2023 New York Laws › BNK - Banking › Article 4 - Private Bankers. › 173 - 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  superintendent  of  financial  services 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.