N.Y. Financial Services Law Section 805
Open-end commercial financing disclosure requirements

A provider, subject to this article, shall provide the following disclosures to a recipient at the time of extending a specific offer for open-end financing according to formatting prescribed by the superintendent:

(a)

The maximum amount of credit available to the recipient (e.g., the credit line amount), and the amount scheduled to be drawn by the recipient at the time the offer is extended, if any, less any fees deducted or withheld at disbursement.

(b)

The finance charge.

(c)

The annual percentage rate, using only the words annual percentage rate or the abbreviation “APR”, expressed as a nominal yearly rate, inclusive of any fees and finance charges that cannot be avoided by a recipient, and calculated in accordance with the federal Truth in Lending Act, Regulation Z, 12 C.F.R. § 1026.22 and based on the maximum amount of credit available to the recipient and the term resulting from making the minimum required payments term as disclosed, regardless of whether such act or such regulation would require such a calculation.

(d)

The total repayment amount, which is the draw amount, less any fees deducted or withheld at disbursement, plus the finance charge. The total repayment amount shall assume a draw amount equal to the maximum amount of credit available to the recipient if drawn and held for the duration of the term or draw period.

(e)

The term of the plan, if applicable, or the period over which a draw is amortized.

(f)

The payment frequency and amounts, based on the assumptions used in the calculation of the annual percentage rate, including a description of payment amount requirements such as a minimum payment amount, and if the payment frequency is other than monthly, the amount of the average projected payments per month. For payment amounts that are variable, the provider should include a payment schedule, or a description of the method used to calculate the amounts and frequency of payments, and the estimated average monthly payment amount.

(g)

A description of all other potential fees and charges that can be avoided by the recipient, including, but not limited to, draw fees, late payment fees, and returned payment fees.

(h)

Were the recipient to elect to pay off or refinance the commercial financing prior to full repayment, the provider must disclose:

(i)

whether the recipient would be required to pay any finance charges other than interest accrued since their last payment. If so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(ii)

whether the recipient would be required to pay any additional fees not already included in the finance charge.

(i)

A description of collateral requirements or security interests, if any.

Source: Section 805 — Open-end commercial financing disclosure requirements, https://www.­nysenate.­gov/legislation/laws/FIS/805 (updated Jan. 7, 2022; accessed Oct. 26, 2024).

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Accessed:
Oct. 26, 2024

Last modified:
Jan. 7, 2022

§ 805’s source at nysenate​.gov

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