Verb Technology Company Inc (VERB)

[ki2002rom]

FALSE

The defendant will
demonstrate to this court that the transactions violate New York’s criminal usury laws,
specifically Penal Law §190.40, and are thus void, ab initio, pursuant to G.O.L §5-511. It is well
established that loans that charge an interest rate exceeding 25% in New York, violate New
York’s usury laws and are void as a matter of law pursuant to G.O.L §5-511. See Rothstein v.
Isolation Film LLC, 2017 U.S. Dist. 59133 (S.D.N.Y. Mar. 22, 2017) where this court held that
the underlying obligation being sued upon was criminally usurious, void as a matter of law, and
dismissed the complaint pursuant to Fed. R. Civ. Pro. §12(b)(6). The usury avoidance statute also
applies to all collateral agreements in connection with a criminally usurious transaction. (See
New York G.O.L. §5-511(2)).