If it appears that New York's usury statute will apply, then the parties need to consider not only the nominal interest rate stated in the loan agreement or promissory note, but possibly also the fees that the lender plans to charge, in computing the interest rate for usury purposes. Shares of the borrower's stock or warrants or other securities being issued to the lender as part of the consideration for the loan also need to be considered. One can easily see how the resulting interest rate could exceed the 25% maximum allowed under New York's criminal usury statutes.