00:00.000 --> 00:03.030 Sean Murray: I got two questions afterwards, because I mentioned 00:03.030 --> 00:05.850 I wasn't really even in passing. I said it pretty directly that 00:05.850 --> 00:08.580 if you charge more than 25 percentage annualized interest 00:08.580 --> 00:11.460 in New York State, you've committed a criminal act. That's 00:11.460 --> 00:13.980 what the New York State statute says, and a few people were 00:13.980 --> 00:17.730 like, well, wait. A lot of these online lenders that we work with 00:17.730 --> 00:21.090 are clearly charging more than 25% to businesses in New York. 00:21.360 --> 00:24.210 Are you saying they're committing a crime? And I was 00:24.210 --> 00:26.760 like, well, well, no, I'm not. I wasn't. 00:27.300 --> 00:29.040 Johny Fernandez: We did emphasize we're not lawyers. 00:29.070 --> 00:32.160 This is not legal advice. This is we. 00:32.310 --> 00:34.380 Sean Murray: Well, yeah. Well, yes. But I know the answer to 00:34.380 --> 00:34.470 it. 00:34.470 --> 00:34.620 Johny Fernandez: Yeah. 00:34.650 --> 00:36.998 Sean Murray: So it wasn't like, oh, I'm not lawyers. Don't 00:37.050 --> 00:40.181 listen to me. No, what I told you is true. Yeah. What I told 00:40.233 --> 00:43.260 you was true. And the reason there are online lenders, and 00:43.312 --> 00:46.600 lots of lenders who lend to New York businesses above 25%, they 00:46.652 --> 00:49.887 lend to consumers above 25%. How does this work? How if it's a 00:49.939 --> 00:53.018 crime in New York, how do they do it? Well, it's because if 00:53.071 --> 00:56.045 you're a national, a state chartered bank, you are exempt 00:56.097 --> 00:59.437 from the New York State rule. So New York had this rule, it says 00:59.489 --> 01:02.881 you can't do it. But if you're a bank, state chartered like Utah, 01:02.933 --> 01:06.064 or Virginia or something or a nationally chartered bank, you 01:06.117 --> 01:09.091 don't have to abide by those rules. Yeah. And some of the 01:09.143 --> 01:12.170 online lenders that people are familiar with, you might be 01:12.222 --> 01:15.405 thinking, wait, but they're not a bank. Well, that feeds into 01:15.458 --> 01:18.328 the whole bank partnership thing that we hear about and 01:18.380 --> 01:21.615 partnering with banks. And you wonder why a bank is making the 01:21.668 --> 01:24.955 loan? Well, it's because banks are exempt from that rule. Banks 01:25.007 --> 01:28.034 can lend in whatever APR they want. They don't they're not 01:28.086 --> 01:31.009 they're not they don't have to abide by New York State's 01:31.061 --> 01:34.192 criminal usury cap, it doesn't apply to them. Now, does this 01:34.244 --> 01:37.479 make New York State very happy? I don't, I don't think so. But 01:37.532 --> 01:40.715 it's, but it's kind of been the standard for a long time, you 01:40.767 --> 01:43.950 can get a credit card in New York State that charges you more 01:44.002 --> 01:47.290 than 25% interest, because the bank is the one behind the card. 01:47.342 --> 01:50.630 And they're not. They don't have to abide by these rules. So if 01:50.682 --> 01:54.022 anyone's wondering, hey, how how did this make any sense? Online 01:54.074 --> 01:57.466 lenders or banks, online lenders who are partnered with banks, or 01:57.518 --> 02:00.493 banks, are exempt from that rule. So that's what that was 02:00.545 --> 02:03.676 all about. And I hope people understand that too. Because if 02:03.728 --> 02:06.598 there's someone out there saying, they're a lender, and 02:06.650 --> 02:09.938 they're lending to businesses in New York, you need to start to 02:09.990 --> 02:12.965 think about how they do it. Because if they're charging a 02:13.017 --> 02:16.200 certain rate of interest, they could be they could be getting 02:16.252 --> 02:19.488 into dangerous, hairy, dangerous territory. So always ask that 02:19.540 --> 02:22.671 question. Someone is saying we're lending if you're a broker 02:22.723 --> 02:25.750 someone's saying their lender, start to ask them questions 02:25.802 --> 02:29.037 about how they can legally lend in states like New York, other 02:29.090 --> 02:32.221 states have similar laws, but I think New York is a popular, 02:32.273 --> 02:35.300 we're here in New York. Yeah. Right. And a lot of a lot of 02:35.352 --> 02:38.639 brokers and lenders and funders are based in New York, a lot of 02:38.692 --> 02:41.979 businesses are in New York. So these are the questions you need 02:42.031 --> 02:45.267 to ask if you're a lender in in New York, ask them, how do you 02:45.319 --> 02:46.050 do it legally?