§ 173. Rate of interest; effect of usury. 1. No private banker shall\ntake, receive, reserve or charge on any loan or discount made, or upon\nany note, bill of exchange or other evidence of debt, interest as\ncomputed pursuant to this section, at a rate greater than the rate\nprescribed by the superintendent of financial services pursuant to\nsection fourteen-a of this chapter, or, if no rate has been so\nprescribed, six per centum per annum, or two dollars if the interest so\ncomputed is less than that amount. Such interest may be taken in\nadvance, reckoning the days for which the note, bill or evidence of debt\nhas to run. The knowingly taking, receiving, reserving or charging a\ngreater rate of interest shall be held and adjudged a forfeiture of the\nentire interest which the note, bill of exchange or other evidence of\ndebt carries with it, or which has been agreed to be paid thereon. If a\ngreater rate of interest has been paid, the person paying the same or\nhis legal representatives may recover twice the entire amount of the\ninterest thus paid from the private banker. The purchase, discount or\nsale of a bona fide bill of exchange, note or other evidence of debt\npayable at another place than the place of such purchase, discount or\nsale at not more than the current rate of exchange for sight draft, or a\nreasonable charge for the collection of the same, in addition to the\ninterest, shall not be considered interest for the purpose of any law\nregulating the maximum rate of interest which may be charged, taken or\nreceived.\n Anything contained in this subdivision to the contrary\nnotwithstanding, the charging of interest or discount on a loan or\ndiscount at an office of a private banker located outside of the states\nof the United States of America and the District of Columbia at a rate\nallowed by the laws of the country, territory, dependency, province,\ndominion, insular possession or other political subdivision where such\noffice is located, or the acquisition by a private banker of a part\ninterest or the entire interest in any loan or discount heretofore or\nhereafter made by a bank or trust company or any other banking\ninstitution at an office located outside of the states of the United\nStates of America and the District of Columbia, shall not be a violation\nof this section.\n 1-a. Anything contained in this section to the contrary\nnotwithstanding, any private banker, in purchasing or otherwise\nacquiring, any note or other evidence of debt, which has arisen out of\nthe sale of personal property or the performance of services on credit\nand which is repayable in instalments from the payee or holder thereof,\nmay take, receive, reserve or charge an amount not exceeding twelve per\ncentum per annum, computed pursuant to this section on unpaid principal\nbalances, or the sum of ten dollars, whichever is the greater; provided,\nhowever, that nothing contained in this subdivision shall authorize a\nprivate banker to take, receive, reserve or charge upon the purchase or\nother acquisition of any two or more notes or other evidences of debt,\narising out of the same transaction, an amount greater than such private\nbanker would be entitled to take, receive, reserve or charge if all of\nsuch obligations constituted a single obligation. In the event that the\nprivate banker insures, under a group insurance policy, the life of the\nperson primarily liable on any such obligation, or in the event that the\nprivate banker requires insurance on personal property securing any such\nobligation, the actual cost of such insurance may be added to the amount\nwhich such private banker may take, receive, reserve or charge upon the\npurchase or other acquisition of such obligation. This subdivision shall\nnot be in derogation of any powers, rights or privileges possessed by\nany private banker prior to the effective date this subdivision.\n 2. Upon advances of money repayable on demand to an amount not less\nthan five thous
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