NY A04889

Requires any person or entity making or soliciting commercial financing products (loans, lines of credit, asset purchases, or leases of $500,000 or less) to businesses in New York to obtain a license from the superintendent of financial services

Exempts from licensing requirements: those making 5 or fewer transactions per year, banking organizations, federal credit unions, insurance companies, persons licensed under other applicable state laws, and business ownership purchase transactions

Establishes licensing requirements including a written application, $50,000 minimum in liquid assets per location, and investigation fees, with the superintendent required to approve or deny applications within 90 days

Prohibits licensees from taking confessions of judgment, using powers of attorney for judicial proceedings, or executing instruments with blank spaces to be filled in later

Imposes penalties making unlicensed commercial financing products void and unenforceable, with violators unable to collect any principal, interest, fees, or charges, and subjects violators to misdemeanor charges