The Fourth Department upheld a receivables-purchase claim against the merchant but vacated judgment against its owner because the limited guaranty was not proved.

New York Banking & Finance Breach of Contract Contract Interpretation

Appellate Division, Fourth Department

Uncategorized

NewCo Capital Group v. SPE Trading — Revenue Purchase Agreement Survives Usury Challenge Under NY Three-Factor Test

/ June 26, 2026

The Fourth Department affirms that a merchant cash advance structured as a revenue purchase agreement is not a usurious loan under New York law, applying the three-factor test of reconciliation provisions, finite term, and bankruptcy recourse.

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