§ 5-501. 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
six per centum per annum unless a different rate is prescribed in
section fourteen-a of the banking law.

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. If the rate of interest charged, taken or received on any loan or
forbearance secured primarily by either (i) an interest in real property
improved by a one to six family residence occupied by the owner or (ii)
certificates of stock or other evidence of an ownership interest in a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate taken as security for a loan under subdivision
five of section one hundred three of the banking law, subdivision
eight-a of section two hundred thirty-five of such law or subdivision
two-a of section three hundred eighty of such law, exceeds six per
centum per annum,

a. in the case of a loan referred to by clause (i) of this
subdivision, the term of such loan or forbearance may extend five years
beyond the maximum maturity of such loan otherwise prescribed by law,
and

b. notwithstanding any other provision of law, the unpaid balance of
the loan or forbearance may be prepaid, in whole or in part, at any
time. If prepayment is made on or after one year from the date the loan
or forbearance is made, no penalty may be imposed. If prepayment is made
prior to such time, no penalty may be imposed unless provision therefor
is expressly made in the loan contract, provided that no penalty may be
imposed if prohibited by sections six-l and six-m of the banking law. In
all cases, the right of prepayment shall be stated in the instrument
evidencing the loan or forbearance, provided, however, that the
provisions of this subdivision shall not apply to the extent such
provisions are inconsistent with any federal law or regulation.

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. No law regulating the maximum rate of interest which may be
charged, taken or received shall apply to any loan or forbearance
insured by the federal housing commissioner or for which a commitment to
insure has been made by the federal housing commissioner or to any loan
or forbearance insured or guaranteed pursuant to the provisions of an
act of congress entitled "Servicemen's Readjustment Act of 1944."

6. a. No law regulating the maximum rate of interest which may be
charged, taken or received, except section 190.40 and section 190.42 of
the penal law, shall apply to any loan or forbearance in the amount of
two hundred fifty thousand dollars or more, other than a loan or a
forbearance secured primarily by an interest in real property improved
by a one or two family residence. A loan of two hundred fifty thousand
dollars or more which is to be advanced in installments pursuant to a
written agreement by a lender shall be deemed to be a single loan for
the total amount which the lender has agreed to advance pursuant to such
agreement on the terms and conditions provided therein.

b. No law regulating the maximum rate of interest which may be
charged, taken or received, including section 190.40 and section 190.42
of the penal law, shall apply to any loan or forbearance in the amount
of two million five hundred thousand dollars or more. Loans or
forbearances aggregating two million five hundred thousand dollars or
more which are to be made or advanced to any one borrower in one or more
installments pursuant to a written agreement by one or more lenders
shall be deemed to be a single loan or forbearance for the total amount
which the lender or lenders have agreed to advance or make pursuant to
such agreement on the terms and conditions provided therein.

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.