Practice point: A corporation is prohibited from asserting the defense of civil usury, pursuant to General Obligations Law § 5-521, and an individual guarantor of a corporate obligation is also precluded from raising such a defense.
Student note: The threshold rate for civil usery is 16% per annum, pursuant to General Obligations Law § 5-501[1], [2]; Banking Law § 14-a[1].
Case: Arbuzova v. Skalet, NY Slip Op 01418 (2d Dept. 2012).
Here is the decision.
Tomorrow’s issue: Motions for leave to renew.
