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The borrowers (an individual and a corporation) were charged 24% interest by a company. No one is a guarantor for anyone. The individual was the one making the payments. And in some cases, the individual loaned money to corp who made payments.
The loan is unenforceable in regard to the personal loan. It might be legal in regard to the corporation.
I have read the relevant provisions of the General Obligation Law but they are complex and hard to remember, so I am quoting from a blog from Attorney David Rich who states the law quite well.
In New York State, the rate of interest upon the loan or forbearance of any money, goods, or things in action may not exceed 16% per year. N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a(1). That is, in New York, charging interest of more than 16% per year is civil usury.
N.Y. Gen. Oblig. Law § 5-511 renders void any transaction taking interest in excess of that allowed by N.Y. Gen. Oblig. Law § 5-501. Further, any person who has paid interest in excess of the (16%) rate authorized by N.Y. Gen. Oblig. Law § 5-501 may bring a civil lawsuit against the usurer to recover the amount of money paid above that lawful rate. N.Y. Gen. Oblig. Law § 5-513.
Moreover, N.Y. Penal Law § 190.40 renders it a class E felony knowingly to charge, take, or receive interest at a rate exceeding 25% per year. In other words, in New York, charging, taking, or receiving interest of 25% or more per year is criminal usury.
There are various exemptions from the (16%) civil usury provisions and from the (25%) criminal usury provision.
Corporations or limited liability companies (“LLCs”) borrowing money generally cannot interpose the defense of civil usury in a civil action. N.Y. Gen. Oblig. Law § 5-521(1); N.Y. Limited Liab. Co. Law § 1104(a).See question
I want to buy an existing business but don't have any down payment. I found existing business that does show cash flow where this existing business does generate money to paid back the loan. If I do a list legal help will the lawyer required a fee...
It's very hard to understand what you are asking. What do you mean by a 'list'?See question
1. We are domestic partners. 2. I was asked by her "Do you want to start a business with me?" I said, "Yes." 3. I put money into the business and I worked for free for six months for the benefit of the business. 4. She is the owner of the busi...
An oral contract is just as binding as a written contract, but this certainly doesn't end the matter. Legally the contract may be binding but an oral agreement with no witness and no voice recording can end up being problematic in terms of evidence. But again that is a question of evidence and not of law. Once of the attorneys who responded stated that you lack clean hands because you hid your ownership of the business. I'm not sure why that would indicate that you have unclean hands. There's not enough information here really to do a complete analysis. You say you worked for free. Did you agree to work for free or was this sweat equity that by agreement was supposed to translate into an equity share?See question
I currently live in NY and planning to move to WA in few months. I want to open and register my own Management consulting business. I wil look for Contracts from other companies and get into corp to corp business with them. Once i get the contract...
The first question you need to ask yourself is why do you feel the need to form a limited liability entity in the first place.See question
My mothers husband abandoned her with two ProPertys she was strugling to maintain the two of them. I took the resPonsibility of fixing what needed to be fixed maintaining the tenants, everything that needed to be done. we couldn't even get hot w...
There are not enough facts here to answer this question. To analyse the relationship between your mother and her husband would require a Family Law analysis. There's not enough information to understand who owns the property or what your relationship as a tenant or licensee is with the Ownership interest (also called the Fee) of the Property. You would certainly have some rights under the New York Administrative Code but that would only give you some time to move. A munch more thorough analysis is needed.See question
She keeps telling me she'll pay but doesn't. She's stringing me along for years. She's paying the first mortgage. Can I obtain a collection agency to collect for me?
you can sue on the debt or foreclosure but you can't do both -- it's called election of remedies.See question
the landlord took me to court to evict me because the city wanted to inspect home. he is an absentee landlord, but states he lives there. he never fixed anything in the apartment and everything continued to mold or fall apart in time. i recently m...
If you don't want a judgment against your record you will have to defend this lawsuit -- it seems like classic bullying. No real chance of winning and yet the guy is coming after you. Suits like this can be difficult because a lot of people don't take photos upon leaving. You need to gather whatever evidence you may have.See question
currently I am requesting guardianship of my 14yr old sister with the permission of my mother who is currently ill, I need to know what documents to bring because this will be by third time going back to court on 10/4/12, I filed the petition on 5...
You should bring the following documents:
Your sister's Birth Certificate
Form 6-3, “Preference of a Minor over 14 years of age”. This form should be signed and notarized.
Also, bring proof of identification, preferably a picture ID, and proof of residence.
it's a 3 family house. and the other tenant doesn't hear the noise and has no complaints. She claims that we are responsible for the quiet enjoyment and saftey. I spoke to the upsatirs tenants and they denythe accusations. I sent her a 10 day n...
She very well may have grounds to withhold rent based on a tenant's implied covenant of quiet enjoyment but it's difficult for a Tenant to win a rent abatement on noise unless they have good evidence. Withholding rent does not equal an abatement -- that has to be worked out in court -- but one major issue here is whether or not there is a lease -- Im assuming not because of the 10 day notice.See question
In 1980 my father and his brother (my uncle) bought a two story family house together in Brooklyn, NY. In 1989 my father past away with no will, the probate court gave 1/3 of my father assets (including my fathers interest in the house) to my mom,...
It sounds like your uncle and your mother own the property as a tenancy in common. If that is the case, the uncle would have the right to rent to tenants, but he would have to split the rents with your mom. Obviously he can't force her to pay for utilities and take the rents for himself. However, we would first need to nail down exactly what form of ownership exists here.See question