Loading chat...
NY A10118
Bill
Status
12/23/2020
Primary Sponsor
Kenneth Zebrowski
Click for details
AI Summary
-
Requires non-bank commercial financing providers to disclose specific terms including financing amount, finance charges, annual percentage rate (APR), total repayment amount, term, and payment schedule to borrowers at time of offer.
-
Applies to sales-based financing, closed-end financing, open-end financing, factoring transactions, and other commercial financing forms not intended for personal, family, or household use.
-
Exempts financial institutions, farm lenders, real property-secured transactions, leases, providers making five or fewer transactions annually, and individual transactions over $500,000.
-
Requires providers to disclose prepayment penalties, collateral requirements, additional fees, and early payoff costs; establishes specific APR calculation methods including historical and opt-in methods for sales-based financing.
-
Authorizes the superintendent to establish disclosure formatting rules, impose civil penalties up to $2,000 per violation or $10,000 for willful violations, and grant injunctive relief for knowing violations; effective 180 days after enactment.
Legislative Description
Requires certain providers that extend specific terms of commercial financing to a recipient to disclose certain information about the offer to the recipient, including information concerning the financing amount, finance charges, the annual percentage rate, the total repayment amount, the term, payment amounts, other potential fees, any prepayment costs and a description of any collateral requirements.
Last Action
APPROVAL MEMO.65
12/23/2020