Plaintiff's action is based on the promissory notes which purported to obligate defendant to repay personal loans at an interest rate of at least 18% per annum. General Obligations Law § 5-501 deems a loan usurious if it exceeds 16% per annum (see, Tri-Land Props Inc. v. 115 West 28th Street Corp, 260 A.D.2d 295, 296). Usurious loans are void as a matter of law; the borrower is relieved of all further obligations to pay both the principal and interest (General Obligations Law § 5-511; see, Pemper v. Reifer, 264 A.D.2d 625). A search of the record reveals that the loan was extended by plaintiff to defendant in his personal capacity. The loan check was made out directly to defendant. Recitations which refer to a business owned by defendant or the evidence substantiating corporate uses for the loan do not convert a personal loan into a corporate loan which would render the defense of usury unavailable (see, Seidel v. 18 East 17th Street Owners, 79 N.Y.2d 735, 740). Given the undisputed personal obligation created by the loan and the uncontroverted interest rate in excess of that allowed by statute, defendant's cross-motion to dismiss should have been granted.
THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.