Rate of interest; usury forbidden. 1. The rate of interest,
as computed pursuant to this title, upon the loan or forbearance of any
money, goods, or things in action, except as provided in subdivisions
five and six of this section or as otherwise provided by law, shall be
[highlight]six per centum per annum unless a different rate is prescribed in
section fourteen-a of the banking law[/highlight].
2. No person or corporation shall, directly or indirectly, charge,
take or receive any money, goods or things in action as interest on the
loan or forbearance of any money, goods or things in action at a rate
exceeding the rate above prescribed. The amount charged, taken or
received as interest shall include any and all amounts paid or payable,
directly or indirectly, by any person, to or for the account of the
lender in consideration for making the loan or forbearance as defined by
the superintendent of financial services pursuant to subdivision three
of section fourteen-a of the banking law except such fee as may be fixed
by the commissioner of taxation and finance as the cost of servicing
loans made by the property and liability insurance security fund.
3. (n/a)
4. Except as otherwise provided by law, interest shall not be charged,
taken or received on any loan or forbearance at a rate exceeding such
rate of interest as may be authorized by law at the time the loan or
forbearance is made, whether or not the loan or forbearance is made
pursuant to a prior contract or commitment providing for a greater rate
of interest, provided, however, that no change in the rate of interest
prescribed in section fourteen-a of the banking law shall affect (a) the
validity of a loan or forbearance made before the date such rate becomes
effective, or (b) the enforceability of such loan or forbearance in
accordance with its terms, except that if any loan or forbearance
provides for an increase in the rate of interest during the term of such
loan or forbearance, the increased rate shall not exceed such rate of
interest as may have been authorized by law at the time such loan or
forbearance was made.
4-a. Notwithstanding the provisions of subdivision four of this
section, a loan or forbearance repayable on demand may provide for
changes, reflecting variations in lending rates, from time to time in
the rate of interest payable on such loan or forbearance up to the rate
of interest authorized by law at the time of such change and in such
case the rate of interest may be so changed in accordance with the terms
of the contract or loan commitment relating thereto; provided, however,
that the rate of interest charged, taken or received on such a loan or
forbearance shall not exceed the rate of interest authorized by law as
it may subsequently be reduced from time to time; and further provided,
however, that in no event shall such a loan or forbearance by subject to
an authorized rate of interest less than that applicable at the time
such loan or forbearance was made. The provisions of this subdivision
shall apply only to a loan or forbearance repayable on demand which has
an initial principal of more than five thousand dollars and which the
borrower has the right to repay at any time in whole or in part,
together with accrued interest on the principal so repaid, without any
penalty. With respect to a loan or forbearance covered by this
subdivision, the lender shall disclose to the borrower in writing not
less often than annually the amount of interest accrued or payable as of
the date of such disclosure and the manner by which such amount was
computed.
5. (n/a)
a. (n/a).
b. (n/a)
7. Except as otherwise expressly provided by law, in the event of
prepayment in full of a loan, any refund of unearned interest to which
the borrower may be entitled may not be computed by a sum of the
balances or similar method but must be determined according to a
generally accepted actuarial method.
