N.Y. GOB Law § 5-523

§ 5-523. Interest permitted on advances on collateral security. In\nany case in which advances of money, repayable on demand, to an amount\nnot less than five thousand dollars, are made upon documents of title\nwithin article seven of the uniform commercial code or negotiable\ninstruments within article three or article eight of the uniform\ncommercial code pledged as collateral security for such repayment, it\nshall be lawful to receive or to contract to receive and collect, as\ncompensation for making such advances, any sum to be agreed upon in\nwriting, by the parties to such transaction, provided that there shall\nnot be received or contracted to be received and collected on such\nadvances any amount which would be in violation of section 190.40 of the\npenal law.\n