N.Y. Banking Law Section 235-B
Effect of usury

The knowingly taking, receiving, reserving, or charging by a savings bank of interest at a rate greater than six per centum per annum, as computed pursuant to this section, or in excess of such greater rate of interest as may be authorized by law, shall be held and adjudged a forfeiture of the entire interest which the note or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has been paid, the person paying the same or his legal representatives may recover from the savings bank twice the entire amount of the interest thus paid. Nothing in this section shall be deemed to affect the powers of any savings bank with respect to loans or investments it is authorized to make. * § 235-b

Source: Section 235-B — Effect of usury, https://www.­nysenate.­gov/legislation/laws/BNK/235-B (updated Sep. 22, 2014; accessed Feb. 7, 2026).

229
Application 230
Incorporation 232
Organization certificate to be submitted to superintendent 233
When corporate existence begins 234
General powers 234–A
Settlement, modification or readjustment of investment 234–B
Trust powers 235
Investment of funds 235–B
Effect of usury 235–C
Regulation of certain charges 235–D
Service corporations owned by savings banks 236
Deposits by savings banks with other banking corporations and private bankers 237
Deposits with savings banks 238
Regulations and restrictions as to repayment of deposits 239
Repayment of deposits of minors, trust deposits, joint deposits, and deposits adversely claimed 239–A
Preservation of books and records 240
Restrictions as to place of business 240–A
Electronic facilities 240–B
Acceptance of United States currency 241
Change of location 242
Assets 243
Surplus fund 244
Earnings 245
Interest payments 246
Board of trustees 246–A
Executive committee and other committees 247
Restrictions upon trustees and officers 248
Removal and forfeiture of office of trustee 249
Compensation of trustees and officers 250
Pensions 251
Meetings 252
Reports to trustees 253
Official communications from department of financial services to be submitted to trustees and noted in minutes 254
Examinations by trustees 255
Reports to superintendent 255–A
Publication and delivery of annual report 256
Photographic reproduction of records 257
Duties of trustees and officers 258
Prohibition of unauthorized savings banks and use of the word “savings” 260
Charters of all savings banks conformed to this article 260–A
Amendment of organization certificate and by-laws 260–B
Conversion of a savings bank into a savings and loan association
Green check means up to date. Up to date

Verified:
Feb. 7, 2026

Last modified:
Sep. 22, 2014

§ 235-B. Effect of usury's source at nysenate​.gov

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