New York § 5-523 Interest permitted on advances on collateral security

New York Statutes

§ 5-523 — Interest permitted on advances on collateral security

New York § 5-523

Law GOBGeneral Obligations

Title 5Interest and Usury; Brokerage On Loans

Art. 5Creation, Definition and Enforcement of Contractual Obligations

This text of New York § 5-523 (Interest permitted on advances on collateral security) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. General Obligations § 5-523 (2026).

Text

  § 5-523. Interest permitted on advances on collateral security.  In\nany case in which advances of money, repayable on demand, to an amount\nnot less than five thousand dollars, are made upon documents of title\nwithin article seven of the uniform commercial code or negotiable\ninstruments within article three or article eight of the uniform\ncommercial code pledged as collateral security for such repayment, it\nshall be lawful to receive or to contract to receive and collect, as\ncompensation for making such advances, any sum to be agreed upon in\nwriting, by the parties to such transaction, provided that there shall\nnot be received or contracted to be received and collected on such\nadvances any amount which would be in violation of section 190.40 of the\npenal law.\n

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§ 5-523. Interest permitted on advances on collateral security. In\nany case in which advances of money, repayable on demand, to an amount\nnot less than five thousand dollars, are made upon documents of title\nwithin article seven of the uniform commercial code or negotiable\ninstruments within article three or article eight of the uniform\ncommercial code pledged as collateral security for such repayment, it\nshall be lawful to receive or to contract to receive and collect, as\ncompensation for making such advances, any sum to be agreed upon in\nwriting, by the parties to such transaction, provided that there shall\nnot be received or contracted to be received and collected on such\nadvances any amount which would be in violation of section 190.40 of the\npenal law.\n