Texas usury laws are designed to protect borrowers from excessive interest charges on loans, capping the maximum allowable rates to prevent predatory lending practices. Under the Texas Finance Code, "interest" is broadly defined as any compensation for the use, forbearance, or detention of money, and usurious interest exceeds the statutory limits—typically 10% per annum unless otherwise specified, with higher caps for commercial loans up to 28% in certain cases.

Toxic Death Spiral Dilution Funding of Public Companies. Many states—including New York—have robust civil and criminal usury laws.  When interest on a convertible note is deemed criminally usurious (e.g., exceeding 25% in New York), the note may be declared void ab initio.

Two decisions out of New York federal courts— DarkPulse, Inc. v. EMA Financial, LLC , 2023 U.S. Dist. LEXIS 33994, at 1 (S.D.N.Y. Mar. 1,...