N.Y. Supreme Court (Nassau County) · US (NY) · 2005 · Decided
Citation/Docket: 2005 WL 1083704 (N.Y. Sup. Ct. 2005)
Posture: Usury challenge to advance
Funder(s) involved: (Consumer funder)
A funding advance was challenged as a usurious loan where recovery on the underlying claim was effectively certain.
Court treated the advance as a loan subject to usury limits because repayment risk was illusory.
Non-recourse labels don't control; if the funder bears no real risk, usury law can apply. Risk-of-loss analysis should be documented at underwriting.
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Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.