Both Asher and KBM are in New York. All their notes are very similar and state any dispute must be settled under New York laws. If they lose this case they could be barred from ever making anymore such loans in the future they would be knowingly be committing a felony. Any company with an outstanding loan from the Kramer's would likely be able to have their cases won in court if they decide to using this case as a precedent. That's a big risk for the Kramer's to take over a relatively small amount.

A person is guilty of criminal usury in the first degree when, not being authorized or permitted by law to do so, he knowingly charges, takes or receives any money or other property as interest on the loan or forbearance of any money or other property, at a rate exceeding twenty-five per centum per annum or the equivalent rate for a longer or shorter period and either the actor had previously been convicted of the crime of criminal usury or of the attempt to commit such crime, or the actor's conduct was part of a scheme or business of making or collecting usurious loans