To me a lot depends on how the judge decides to view the prepayment penalty's. Will they find them part of the interest charged or a separate fee not to be figured into the interest. The judge is supposed to decide this based on court decisions predating 1968.

If the judge decides the fees are interest then the note was criminally usurious from it's inception. Of course then you get into what to do about it since New York law doesn't force the the court to void a loan under criminal law. Although I did find at least one case I posted where although New York criminal usuary didn't, New York civil usuary did. In that case the judge stated the civil usuary law left the court with no discretion on how it could rule since the loan was usurious from it's inception it HAD to be voided.

In yet another where conversions had already started the court found that the lender bore at least some risk since there was no guarantee how much profit he would make even though he made well over the legal limit. The individual court/judge decisions are all over the place. Of course with this one then you get into exactly what did KBM say or promise and are there records. The late payment penalty is definitely usurious by New York laws.