Kurtz v. BMT Capital Group - Merchant Cash Advance Classification

Fri, 24 Apr 2026 01:51:41 +0000
Banking

The United States Bankruptcy Court for the District of Idaho issued a memorandum ruling on BMT Capital Group's partial motion for summary judgment in adversary proceeding 25-06035-NGH. The court granted partial summary judgment in favor of BMT and dismissed Claim 1, which sought declaratory relief that four merchant cash advance agreements were void ab initio under New York's usury statute. The court held that usury under New York law may only be used as an affirmative defense, not as the basis for affirmative claims for relief. Claims 2 and 3 regarding avoidance of fraudulent transfers were denied without prejudice as premature, pending further briefing on the true sale versus loan characterization issue.