§ 5-521. Corporations prohibited from interposing defense of usury. 1.
No corporation shall hereafter interpose the defense of usury in any
action. The term corporation, as used in this section, shall be
construed to include all associations, and joint-stock companies having
any of the powers and privileges of corporations not possessed by
individuals or partnerships.

2. The provisions of subdivision one of this section shall not apply
to a corporation, the principal asset of which shall be the ownership of
a one or two family dwelling, where it appears either that the said
corporation was organized and created, or that the controlling interest
therein was acquired, within a period of six months prior to the
execution, by said corporation of a bond or note evidencing
indebtedness, and a mortgage creating a lien for said indebtedness on
the said one or two family dwelling; provided, that as to any such bond,
note or mortgage executed by such a corporation and effective prior to
April sixth, nineteen hundred fifty-six, the defense of usury may be
interposed only in an action or proceeding instituted for the
collection, enforcement or foreclosure of such note, bond or mortgage.

Any provision of any contract, or any separate written instrument
executed prior to, simultaneously with or within sixty days after the
delivery of any moneys to any borrower in connection with such
indebtedness, whereby the defense of usury is waived or any such
corporation is estopped from asserting it, is hereby declared to be
contrary to public policy and absolutely void.

3. The provisions of subdivision one of this section shall not apply
to any action in which a corporation interposes a defense of criminal
usury as described in section 190.40 of the penal law.