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4% per month, i.e., 48% per year would be unenforceable. In view of the public policy underlying Penal Law § 190.40, which makes an interest charge of more than 25% per year a criminal offense, these late fees are unenforceable (see Sandra's Jewel Box v. 401 Hotel, 273 A.D.2d 1, 3 [1st Dept 2000]; see also Clean Air Options, LLC v Humanscale Corp., 142 AD3d 923 [1st Dept 2016] ).
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4% fee on the monthly rent is only 4%/ year.
Assuming $2,000/month rent, a 4% late fee is $80. If charged for one year, 12 x $80= $960, or 4% of the $24,000 yearly rent.
But I assume that if the building charged $960/month in late fees on a $2,000 monthly rent, it would be usurious.
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