What laws apply to a Business making a loan to another business...

Asked over 2 years ago - New York, NY

A Nevada LLC with offices in New York made a $65k loan to a Texas Corp that bounced a check to repay and now we want to declare defualt. The agreed upon payoff was 30% on top of the $65k on the one year anniversary.

1. Does Nevada, NY, or Texas laww apply amd will I be able to collect my 30%?

Note: The promissory note states the rate of interest will be the lower of the 30% as agreed or the highest allowable by Nevada law. I also have a PG from the owner of the business.

Can I go after these deadbeats? They haven't paid a dime in interest or principal to date...

Attorney answers (3)

  1. Jeffrey Bruce Gold

    Pro

    Contributor Level 19

    2

    Lawyers agree

    Answered . I think you want to stay as far from NY as possible since you could run afoul of NY's criminal usury laws. The law that applies is the law that you made apply in the agreement to loan the money. If you didn't choose a forum, then you'll argue for Nevada, which has relaxed usury laws, and they'll argue for NY, and if not NY, then Texas which is no where near as bad as NY, but still not as good as Nevada. If you are going to make it a business charging high interest loans, then you really should consult with an attorney before making the loans, not after default.

  2. Michael David Siegel

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    Answered . It would seem to me you would want to sue in TX. NY seems to have no nexus to the case.

  3. Bryant Keith Martin

    Contributor Level 18

    1

    Lawyer agrees

    Answered . Why do you keep asking these Qs on AVVO? Are you hoping some dumb lawyer will tell you it's OK and you can sue and collect on your usurious loans? Well, you can't, at least not the interest.You need to do 2 things:
    Hire a lawyer to try to collect.
    Hire a lawyer to counsel you on what is and is not permitted under the usury laws, before making any more deals.

    DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is... more

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