NY A10878

Creates new Article 9-A in the Banking Law establishing licensing requirements for entities making or soliciting commercial financing products (loans, asset purchases, leases) of $500,000 or less to New York businesses.

Requires commercial finance providers to obtain a license from the superintendent, maintain at least $50,000 in liquid assets per location, and submit to examinations and annual reporting; exempts banking organizations, credit unions, insurance companies, and those making five or fewer transactions annually.

Prohibits unlicensed commercial financing without a license, with penalties including voiding of transactions and misdemeanor charges for violations; allows superintendent to suspend or revoke licenses for non-compliance or failure to meet fitness standards.

Renumbers current Article 9-A (check cashing) to Article 9-B and makes conforming amendments to other sections of the Banking Law to reflect this change.

Takes effect 180 days after enactment; authorizes superintendent to promulgate necessary rules and regulations immediately.