§ 1104 — Limited liability companies prohibited from interposing defense of usury

New York § 1104

• Jurisdiction: New York
• Law LLC: Limited Liability Company Law
• Art. 11: Miscellaneous

Text

§ 1104. Limited liability companies prohibited from interposing\ndefense of usury. (a) No domestic or foreign limited liability company\nshall hereafter interpose the defense of usury in any action.\n (b) The provisions of subdivision (a) of this section shall not apply\nto a domestic or foreign limited liability company, the principal asset\nof which is the ownership of a one or two family dwelling, where it\nappears either that such limited liability company was formed, or that\nthe controlling interest therein was acquired, within a period of six\nmonths prior to the execution by such limited liability company of a\nbond or note evidencing indebtedness, and a mortgage creating a lien for\nsuch indebtedness on such one or two family dwelling.\n Any provision of any contract, or any separate written instrument\nexecuted prior to, simultaneously with or within sixty days after the\ndelivery of any moneys to any borrower in connection with such\nindebtedness, whereby the defense of usury is waived or any such limited\nliability company estopped from asserting it, is hereby declared to be\ncontrary to public policy and absolutely void.\n (c) The provisions of subdivision (a) of this section shall not apply\nto any action in which a limited liability company interposes a defense\nof criminal usury as described in section 190.40 of the penal law.\n