New York Consolidated Laws
N.Y. Banking Law § 340 (2026)
Doing business without license prohibited
✓ text as retrieved May 2026 (this copy records no edition or section history)
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§ 340. Doing business without license prohibited. No person or other entity shall engage in the business of making loans in the principal amount of twenty-five thousand dollars or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of fifty thousand dollars or less for business and commercial loans, and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law to charge if he were not a licensee hereunder except as authorized by this article and without first obtaining a license from the superintendent. For the purposes of this section, a person or entity shall be considered as engaging in the business of making loans in New York, and subject to the licensing and other requirements of this article, if it solicits loans in the amounts prescribed by this section within this state and, in connection with such solicitation, makes loans to individuals then resident in this state, except that no person or entity shall be considered as engaging in the business of making loans in this state on the basis of isolated, incidental or occasional transactions which otherwise meet the requirements of this section. Nothing in this article shall apply to licensed collateral loan brokers.
Notes of Decisions
Cited in 6
cases (1 in the last 5 years), 2005–2026 · leading case: K9 Bytes, Inc. v. Arch Capital Funding, LLC, 56 Misc. 3d 807 (N.Y. Sup. Ct. 2017).
K9 Bytes, Inc. v. Arch Capital Funding, LLC, 56 Misc. 3d 807 (N.Y. Sup. Ct. 2017). “In sum, the claims are: (1) to vacate the judgments by confession because of usury “and other wrongful conduct”; (2) to obtain a judgment against defendants because of usury, and to vacate the agreements; (3) to obtain a judgment based on the overcharge of interest; (4) damages…”
United States v. Moseley, 980 F.3d 9 (2d Cir. 2020). “See N.Y. Banking Law §§ 340 , 356. Moseley’s business was unlicensed, but his model generated charges that violated the licensed lenders’ maximum rate as well.”
Colonial Funding Network, Inc. v. Epazz, Inc., 252 F. Supp. 3d 274 (S.D.N.Y. 2017). “The motion to strike the first defense of criminal usury and the thirteenth defense that TVT lent money without a license as required by New York’s Licensed Lender Law, N.Y. Banking Law § 340 et seq., is granted because, as discussed above, the Agreements are purchases and not…”
People v. Jag NY, LLC, 18 A.D.3d 950 (N.Y. App. Div. 3d Dep't 2005). “Following respondents’ answer and various discovery, Supreme Court found respondents in violation of General Obligations Law § 5-501, Banking Law § 340, General Business Law § 601 and Exec *952 utive Law § 63 (12) and, inter alia, issued a permanent injunction prohibiting…”
People v. Yellowstone Capital LLC, 2026 NY Slip Op 30767(U) (N.Y. Sup. Ct., New York Cty. 2026). “Banking Law §§ 340 and 356 Banking Law § 340 provides, in relevant part: No person or other entity shall engage in the business of making loans in the principal amount of twenty-five thousand dollars or less for any loan to an individual for personal, family, household, or…”
People of The State of New York v. Debt Resolve, Inc., No. 1:18-cv-09812 (S.D.N.Y. July 3, 2019). “Finally, according to the Complaint, Defendants failed to secure certain New York state licenses, as required by Banking Law §§ 340, 492 and New York Personal Property Law (“PPL”) §§ 402 or 413 On January 25, 2019, two groups of Defendants moved to dismiss the Complaint in full;…”
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