New York Court Of Appeals Rules Corporate Convertible Loans May Be Subject To Usury Laws
A recent decision from the New York Court of Appeals may affect lenders who use convertible loans when lending to corporate borrowers. The decision in Adar Bays, LLC v. GeneSYS ID, Inc., holds that the conversion price in a convertible option can be considered interest and thus may fall under the purview of New York’s criminal usury laws. Accordingly, corporate lenders must take appropriate steps to ensure that the value of their convertible loan rates is […]