§ 5-501. Rate of interest; usury forbidden. 1. The rate of interest,\nas computed pursuant to this title, upon the loan or forbearance of any\nmoney, goods, or things in action, except as provided in subdivisions\nfive and six of this section or as otherwise provided by law, shall be\nsix per centum per annum unless a different rate is prescribed in\nsection fourteen-a of the banking law.\n 2. No person or corporation shall, directly or indirectly, charge,\ntake or receive any money, goods or things in action as interest on the\nloan or forbearance of any money, goods or things in action at a rate\nexceeding the rate above prescribed. The amount charged, taken or\nreceived as interest shall include any and all amounts paid or payable,\ndirectly or indirectly, by any person, to or for the account of the\nlender in consideration for making the loan or forbearance as defined by\nthe superintendent of financial services pursuant to subdivision three\nof section fourteen-a of the banking law except such fee as may be fixed\nby the commissioner of taxation and finance as the cost of servicing\nloans made by the property and liability insurance security fund.\n 3. If the rate of interest charged, taken or received on any loan or\nforbearance secured primarily by either (i) an interest in real property\nimproved by a one to six family residence occupied by the owner or (ii)\ncertificates of stock or other evidence of an ownership interest in a\ncorporation or partnership formed for the purpose of the cooperative\nownership of real estate taken as security for a loan under subdivision\nfive of section one hundred three of the banking law, subdivision\neight-a of section two hundred thirty-five of such law or subdivision\ntwo-a of section three hundred eighty of such law, exceeds six per\ncentum per annum,\n a. in the case of a loan referred to by clause (i) of this\nsubdivision, the term of such loan or forbearance may extend five years\nbeyond the maximum maturity of such loan otherwise prescribed by law,\nand\n b. notwithstanding any other provision of law, the unpaid balance of\nthe loan or forbearance may be prepaid, in whole or in part, at any\ntime. If prepayment is made on or after one year from the date the loan\nor forbearance is made, no penalty may be imposed. If prepayment is made\nprior to such time, no penalty may be imposed unless provision therefor\nis expressly made in the loan contract, provided that no penalty may be\nimposed if prohibited by sections six-l and six-m of the banking law. In\nall cases, the right of prepayment shall be stated in the instrument\nevidencing the loan or forbearance, provided, however, that the\nprovisions of this subdivision shall not apply to the extent such\nprovisions are inconsistent with any federal law or regulation.\n 4. Except as otherwise provided by law, interest shall not be charged,\ntaken or received on any loan or forbearance at a rate exceeding such\nrate of interest as may be authorized by law at the time the loan or\nforbearance is made, whether or not the loan or forbearance is made\npursuant to a prior contract or commitment providing for a greater rate\nof interest, provided, however, that no change in the rate of interest\nprescribed in section fourteen-a of the banking law shall affect (a) the\nvalidity of a loan or forbearance made before the date such rate becomes\neffective, or (b) the enforceability of such loan or forbearance in\naccordance with its terms, except that if any loan or forbearance\nprovides for an increase in the rate of interest during the term of such\nloan or forbearance, the increased rate shall not exceed such rate of\ninterest as may have been authorized by law at the time such loan or\nforbearance was made.\n 4-a. Notwithstanding the provisions of subdivision four of this\nsection, a loan or forbearance repayable on demand may provide for\nchanges, reflecting variations in lending rates, from time to time in\nthe rate of interest payab
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