§ 5-526. Interest on secured loans or forbearances. 1. Interest
charged on loans or forbearances made to corporations for business or
commercial purposes in the amount of one hundred thousand dollars or
more and secured in compliance with the uniform commercial code shall
not be subject to the limitations of this title or sections 190.40 and
190.42 of the penal law, if on the date when the interest is charged or
accrued, such interest is not greater than eight percentage points above
the prime rate.

2. Such secured loans or forbearances which are made or advanced to
any one corporate borrower in one or more installments pursuant to a
written agreement which provides for either discretionary or mandatory
advances 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
advanced, if such advances are discretionary, or have agreed to advance,
if such advances are mandatory, pursuant to such agreement on the terms
and conditions provided therein.

3. For purposes of this section, the loan or forbearance transaction
must create a security interest as set forth in section 9--109 of the
uniform commercial code and must be filed pursuant to article nine of
such code unless filing is not required pursuant to section 9--310 of
such code, or (b) must create a security interest set forth in section
9--110 of such code.

4. For purposes of this section, the prime rate shall equal the
average prime rate on short term business loans which is published by
the board of governors of the federal reserve system for the most recent
week which was publicly available from the board of governors of the
federal reserve system on the previous business day.