N.Y. Financial Services Law Section 807
Other forms of financing disclosure requirements

The superintendent may require disclosure by a provider extending a specific offer of commercial financing which is not open-end financing, closed-end financing, sales-based financing, or factoring transaction but otherwise meets the definition of commercial financing as provided in this article. Subject to such rules and regulations by the superintendent, a provider subject to this article shall provide the following disclosures to a recipient at the time of extending a specific offer of other forms of financing according to formatting prescribed by the superintendent:

(a)

The total amount of the commercial financing, and the disbursement amount, if different from the financing amount, after 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 yearly rate, inclusive of any fees and finance charges, and calculated in accordance with the relevant sections of the federal Truth in Lending Act, Regulation Z or this article, regardless of whether such act or such regulation would require such a calculation.

(d)

The total repayment amount which is the disbursement amount plus the finance charge.

(e)

The term of the financing.

(f)

The payment amounts:

(i)

for payment amounts that are fixed, the payment amounts and frequency (e.g., daily, weekly, monthly), and the average monthly payment amount; or

(ii)

for payment amounts that are variable, 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, 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 807 — Other forms of financing disclosure requirements, https://www.­nysenate.­gov/legislation/laws/FIS/807 (updated Jan. 7, 2022; accessed Feb. 15, 2025).

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Accessed:
Feb. 15, 2025

Last modified:
Jan. 7, 2022

§ 807’s source at nysenate​.gov

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