N.Y. General Obligations Law § 5-525: Interest charged by a registered broker or dealer for carrying debit balances

§ 5-525. Interest charged by a registered broker or dealer for

carrying debit balances. Interest charged by a broker or dealer

registered under the securities exchange act of nineteen hundred

thirty-four, as amended, for carrying a debit balance including a debit

balance arising out of a non-purpose loan, in an account for a customer

shall not be subject to the limitations of this title, including the

limitations contained in subdivision two of section 5-527 of this title,

if such debit balance is payable on demand and secured by securities or

commodities upon which credit can be extended by a broker or dealer, and

if, on the date when the interest is charged or accrued, such interest

is not greater than eight percentage points above the prime rate. For

the purposes of this section, the prime rate shall equal the average

prime rate on short term business loans which is published by the board

of governors of the federal reserve system for the most recent week

which was publicly available from the board of governors of the federal

reserve system on the previous business day.