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Investors and Usury?

Discussion in 'Banking, Finance, Investments' started by cja_, Feb 18, 2005.

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  1. cja_

    cja_ Law Topic Starter New Member

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    I am not sure if this is the most appropriate place to post this message and if not I apologize. If there is a better spot please advise.

    Situation: I am looking to pick up an angel investor for an upcoming business deal in New York. One of the investors I have been speaking to is from New Hampshire and another is from Texas. This situation is pretty straightforward, they put up a portion of the capital, the transaction is completed, and they receive their money and a return percentage. If , however, the transaction does not go through they get their capital returned as given. At either point their involvement is finished, no monthly payments, no long-term relationship.

    Question: Does this type of situation fall under usury limits? What are those limits? Which state would be more cost effective for me to get the capital from?
     
  2. Scooter

    Scooter New Member

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    No lawyer here would know your answer, as usury is state specific. I would hate to have you get sued. See a local lawyer.
     

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