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Sean Murray: I got two questions
afterwards, because I mentioned

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I wasn't really even in passing.
I said it pretty directly that

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if you charge more than 25
percentage annualized interest

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in New York State, you've
committed a criminal act. That's

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what the New York State statute
says, and a few people were

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like, well, wait. A lot of these
online lenders that we work with

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are clearly charging more than
25% to businesses in New York.

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Are you saying they're
committing a crime? And I was

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like, well, well, no, I'm not. I
wasn't.

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Johny Fernandez: We did
emphasize we're not lawyers.

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This is not legal advice. This
is we.

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Sean Murray: Well, yeah. Well,
yes. But I know the answer to

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it.

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Johny Fernandez: Yeah.

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Sean Murray: So it wasn't like,
oh, I'm not lawyers. Don't

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listen to me. No, what I told
you is true. Yeah. What I told

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you was true. And the reason
there are online lenders, and

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lots of lenders who lend to New
York businesses above 25%, they

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lend to consumers above 25%. How
does this work? How if it's a

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crime in New York, how do they
do it? Well, it's because if

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you're a national, a state
chartered bank, you are exempt

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from the New York State rule. So
New York had this rule, it says

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you can't do it. But if you're a
bank, state chartered like Utah,

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or Virginia or something or a
nationally chartered bank, you

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don't have to abide by those
rules. Yeah. And some of the

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online lenders that people are
familiar with, you might be

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thinking, wait, but they're not
a bank. Well, that feeds into

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the whole bank partnership thing
that we hear about and

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partnering with banks. And you
wonder why a bank is making the

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loan? Well, it's because banks
are exempt from that rule. Banks

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can lend in whatever APR they
want. They don't they're not

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they're not they don't have to
abide by New York State's

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criminal usury cap, it doesn't
apply to them. Now, does this

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make New York State very happy?
I don't, I don't think so. But

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it's, but it's kind of been the
standard for a long time, you

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can get a credit card in New
York State that charges you more

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than 25% interest, because the
bank is the one behind the card.

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And they're not. They don't have
to abide by these rules. So if

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anyone's wondering, hey, how how
did this make any sense? Online

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lenders or banks, online lenders
who are partnered with banks, or

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banks, are exempt from that
rule. So that's what that was

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all about. And I hope people
understand that too. Because if

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there's someone out there
saying, they're a lender, and

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they're lending to businesses in
New York, you need to start to

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think about how they do it.
Because if they're charging a

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certain rate of interest, they
could be they could be getting

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into dangerous, hairy, dangerous
territory. So always ask that

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question. Someone is saying
we're lending if you're a broker

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someone's saying their lender,
start to ask them questions

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about how they can legally lend
in states like New York, other

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states have similar laws, but I
think New York is a popular,

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we're here in New York. Yeah.
Right. And a lot of a lot of

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brokers and lenders and funders
are based in New York, a lot of

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businesses are in New York. So
these are the questions you need

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to ask if you're a lender in in
New York, ask them, how do you

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do it legally?