case in an effort to capture the
legal rate of interest. As Stephen
These former investors are the subject of a lawsuit attempting to force them to return interest paid to them that falls well within the
legal rate of interest of New York state.
Second, regardless of which party appeals, if a judgment debtor retains the use of the money during an appeal, then presumably a debtor may invest the money so that its value compounds at a rate at least equivalent to the
legal rate of interest. The determinative issue common to all cases is which party has use of the money during the pendency of an appeal.
It introduces a maximum period for payment for goods and services and a
legal rate of interest for late payments.
It is very common for mortgage documents to provide that if it is determined that the interest rate is usurious, that amount which exceeds the
legal rate of interest will not be deemed interest, but will be considered to be a payment toward reducing the principal of the mortgage.
