reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.18 - Confidentiality

Current through Register Vol. 46, No. 28, July 10, 2024
Information provided by a Covered Entity pursuant to this
				  Part is subject to exemptions from disclosure under the Banking Law, Insurance
				  Law, Financial Services Law, Public Officers Law or any other applicable state
				  or federal law.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.19 - Exemptions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Limited
				exemption. Each covered entity with:
(1) fewer
				than 20 employees and independent contractors of the covered entity and its
				affiliates;
(2) less than $
				7,500,000 in gross annual revenue in each of the last three fiscal years from
				all business operations of the covered entity and the business operations in
				this State of the covered entity's affiliates; or
(3) less than $15,000,000 in year-end total
				assets, calculated in accordance with generally accepted accounting principles,
				including assets of all affiliates, shall be exempt from the requirements of
				sections 500.4,
				500.5,
				500.6,
				500.8,
				500.10,
				500.14 (a)(1),
				(a)(2), and (b), 500.15 and 500.16 of this
				Part.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.20 - Enforcement

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This regulation
				will be enforced by the superintendent pursuant to, and is not intended to
				limit, the superintendent's authority under any applicable laws.
(b) The commission of a single act prohibited
				by this Part or the failure to act to satisfy an obligation required by this
				Part shall constitute a violation hereof. Such acts or failures include,
				without limitation:
(1) the failure to secure
				or prevent unauthorized access to an individual's or an entity's nonpublic
				information due to noncompliance with any section of this Part; or
(2) the material failure to comply for any
				24-hour period with any section of this Part.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.21 - Effective Date

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This Part
				will be effective March 1, 2017. Covered entities will be required to annually
				prepare and submit to the superintendent a certification of compliance with New
				York State Department of Financial Services Cybersecurity Regulations under
				section 500.17(b) of this
				Part commencing February 15, 2018.
(b) The second amendment to this Part shall
				become effective November 1, 2023.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.22 - Transitional Periods

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Transitional Period. Covered Entities shall have 180 days from the effective
				date of this Part to comply with the requirements set forth in this Part,
				except as otherwise specified.
(b)
				The following provisions shall include additional transitional periods. Covered
				Entities shall have:
(1) One year from the
				effective date of this Part to comply with the requirements of sections
				500.04(b), 500.05, 500.09,
				500.12, and
				500.14(a)(2) of
				this Part.
(2) Eighteen months
				from the effective date of this Part to comply with the requirements of
				sections 500.06, 500.08,
				500.13,
				500.14(a)(1) and
				500.15 of this Part.
(3) Two years from the effective date of this
				Part to comply with the requirements of section
				500.11 of this Part.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.23 - Severability

Current through Register Vol. 46, No. 28, July 10, 2024
If any provision of this Part or the application thereof to
				  any Person or circumstance is adjudged invalid by a court of competent
				  jurisdiction, such judgment shall not affect or impair the validity of the
				  other provisions of this Part or the application thereof to other Persons or
				  circumstances.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 500 - CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES › Section 500.24 - Exemptions from electronic filing and submission requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A filer required to make an electronic
				filing or a submission pursuant to this Part may apply to the superintendent
				for an exemption from the requirement that the filing or submission be
				electronic by submitting a written request to the superintendent for approval
				at least 30 days before the filer shall submit to the superintendent the
				particular filing or submission that is the subject of the request.
(b) The request for an exemption shall:
(1) set forth the filer's DFS license number,
				NAIC number, Nationwide Multistate Licensing System number or institution
				number;
(2) identify the specific
				filing or submission for which the filer is applying for the
				exemption;
(3) specify whether the
				filer is making the request for an exemption based upon undue hardship,
				impracticability or good cause, and set forth a detailed explanation as to the
				reason that the superintendent should approve the request; and
(4) specify whether the request for an
				exemption extends to future filings or submissions, in addition to the specific
				filing or submission identified in paragraph (2) of this subdivision.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part, the following definitions
				  apply:
(a)
Amount
				financed
means, with respect to:
(1)
				sales-based financing, the amount of funds to be provided by the financer to
				the recipient or on the recipient's behalf, minus any prepaid finance
				charge;
(2) a closed-end financing,
				the principal amount, plus any other amounts that are financed by the financer
				and are not part of the finance charge, minus any prepaid finance
				charge;
(3) a commercial open-end
				financing, the approved credit limit, minus any prepaid finance
				charge;
(4) a factoring transaction
				disclosure made pursuant to Financial Services Law section 806, the receivables
				purchase price, minus any prepaid finance charge;
(5) an asset-based lending transaction, the
				approved credit limit; and
(6) a
				lease financing transaction, if the financer:
(i) does not select, manufacture or supply
				the goods to be leased, the net cost to the financer to acquire the property to
				be leased, including any related costs and charges financed as a part of such
				transaction, which may include installation charges, delivery costs, software
				license fees, sales and use taxes, minus any prepaid finance charge;
				or
(ii) selects, manufactures or
				supplies the goods to be leased, the price that the financer would sell the
				goods in a cash transaction, including any related costs and charges financed
				as a part of such transaction, which may include installation charges, delivery
				costs, software license fees, sales and use taxes, minus any prepaid finance
				charge and any down payment or other deposit to be paid by the
				recipient.
(iii) In either case, if
				the recipient is approved for a lease financing in a stated dollar amount that
				may be funded over multiple leases or lease schedules, then the aggregate net
				cost or price for the goods under such approval may be used to determine the
				amount financed.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.2 - Definition of finance charge

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Finance charge
means the cost of financing as a dollar amount
				and equals the sum of:
(1) for all commercial
				financing transactions, all charges that would be included in the finance
				charge under the federal Truth in Lending Act, Regulation Z,
				12 C.F.R. section
				1026.4 (as amended), and only such charges,
				if the transaction were a consumer credit transaction and the financer were a
				creditor according to the definition set forth in
				15 U.S.C. section
				1602(g);
(2) in any accounts receivable purchase
				transaction that is not a factoring transaction, the discount taken on the face
				value of the accounts receivable;
(3) in a factoring transaction, the
				difference between the face value on the invoice and the amount paid directly
				to the recipient upon assignment of the legally enforceable claim to the
				financer, inclusive of any factoring fee. For the purpose of the calculation
				described in the preceding sentence, if the transaction involves a reserve
				amount, the reserve amount shall also be subtracted from the face value on the
				invoice only if the financer reasonably anticipates that it will return all
				reserve amounts to the recipient once it has been paid for the legally
				enforceable claim or claims assigned by the recipient or upon termination of
				the contractual relationship between the financer and the recipient, properly
				crediting payments made by account debtors and previous collections by the
				financer from the recipient, all amounts held in reserve, and payments by
				insurers on defaulted accounts. In determining what the financer can reasonably
				anticipate, the financer shall consider past performance of similar contracts
				(both those made to the recipient and other similar recipients) and the
				policies and procedures of the financer; and
(4) in any lease financing transaction, the
				sum of lease payments (including any regular periodic payments and irregular
				payments) and price of the purchase option that the lessee may pay to acquire
				the leased goods at the end of the lease, less the amount financed.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.3 - Annual percentage rate disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Any
				provider who extends a specific offer of commercial financing to a recipient
				shall, at the time of extending the specific offer of commercial financing,
				disclose to the recipient the annual percentage rate.
(b) The annual percentage rate is a measure
				of the cost of credit, expressed as a yearly rate, that relates the amount and
				timing of value received by the recipient to the amount and timing of payments
				made to the provider. For purposes of this section, the annual percentage rate
				shall be determined in accordance with either the United States Rule method or
				the actuarial method, as both are set forth in Appendix J, 12 C.F.R. Part 1026
				(as amended). When a provider states a rate of finance charge or a financing
				amount to a recipient during an application process for commercial financing
				and after the quotation of a specific commercial financing offer, the provider
				shall also state the rate as an "annual percentage rate," using that term or
				the abbreviation APR.'
(c) The
				annual percentage rate calculation shall include all finance charges.
(d) When calculating the required disclosures
				for commercial open-end financing, the provider shall assume that the recipient
				borrows the approved credit limit at origination and makes no subsequent draws
				and that minimum on-time payments are made pursuant to the contract.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.4 - Allowed tolerances

Current through Register Vol. 46, No. 28, July 10, 2024
(a) An annual
				percentage rate disclosed pursuant to section
				600.3 of this Part shall be
				considered accurate if:
(1) it is not more
				than one-eighth of one percentage point above or below the annual percentage
				rate determined in accordance with section
				600.3(b);
				or
(2) in an irregular transaction,
				it is not more than one-fourth of one percentage point above or below the
				annual percentage rate determined in accordance with section
				600.3(b). For
				purposes of this paragraph, an irregular transaction is one that includes one
				or more of the following features: multiple advances, irregular payment
				periods, or irregular payment amounts (other than an irregular first period or
				an irregular first or final payment); or
(3) the percentage difference between the
				annual percentage rate determined in accordance with section
				600.3(b) of this
				Part and the annual percentage rate disclosed pursuant to section
				600.3(a) of this
				Part is 2.5 percent or less. The percentage difference shall be calculated as
				follows: The annual percentage rate disclosed pursuant to section
				600.3(a) shall be
				subtracted from the annual percentage rate determined in accordance with
				section 600.3(b), and the
				resulting difference shall be divided by rate disclosed pursuant to section
				600.3(a) and
				multiplied by 100.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.5 - General formatting requirements and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures provided in accordance with the CFDL shall comply
				  with the requirements of this section.
(a) At the top of the disclosure, centered on
				the page or other display medium, the provider shall print "OFFER SUMMARY" in
				bold font, followed by a one-to-five-word description of the type of product
				offered (e.g. "Merchant Cash Advance"), which may include the financer's
				branding terminology.
(b) For any
				disclosure required to comply with Section
				600.18(a) of this
				Part, at the bottom of the disclosure, below any other information required by
				the CFDL, the provider shall print the following statement: "Applicable law
				requires this information to be provided to you to help you make an informed
				decision. By signing below, you are confirming that you received this
				information." Below the statement, the provider shall include a space for the
				recipient to sign the form labeled "Recipient Signature" and a space for the
				recipient to write the date of the recipient's signature, labeled "Date." In
				the case of electronically transmitted disclosures, such statement may be
				placed below the attachment or link to the disclosures and shall direct the
				recipient to the space for signature. A recipient may sign the disclosure with
				a physical signature or a digital signature. A digital signature may be affixed
				by the recipient by any means that is compliant with the New York Electronic
				Signatures and Records Act, State Technology Law sections 103-109 ("ESRA"),
				including an "Accept" button or checking a digital box acknowledging agreement,
				provided the financer provides to the recipient the date stamp and receipt
				required by sub-section
				600.5(j) herein.
				For any disclosure not required to comply with Section
				600.18(a) of this
				Part, at the bottom of the disclosure, below any other information required by
				this Part, the provider shall print the following statement: "Applicable law
				requires this information to be provided to you to help you make an informed
				decision."
(c) If the term or
				estimated term of a transaction is:
(1) one
				year or less, the term or estimated term shall be disclosed in days, starting
				with the day after the transaction is consummated and including the day of the
				final payment; or
(2) greater than
				one year, the term or estimated term shall be disclosed in units of years and
				months, with any remaining days expressed as a portion of a month to the
				nearest two decimal points.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.6 - Sales-based financing disclosure formatting and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for all sales-based financing provided in
				  accordance with Financial Services Law section 803, except for asset-based
				  lending that meets the definition of sales-based financing, shall comply with
				  the requirements of this section.
(a)
				The provider shall present the required disclosures in a table consisting of
				ten rows and three columns.
(b) The
				first row of the table shall include only the following information:
(1) in the first column, the following
				language: "Funding Provided.";
(2)
				in the second column, the amount financed; and
(3) in the third column, in the order listed
				and in one paragraph:
(i) "This is how much
				funding will provide."
(ii) If the
				amount financed is greater than the recipient funds: "Due to deductions or
				payments to others, the total funds that will be provided to you directly is.
				For more information on the amounts that will be deducted, please review the
				attached document Itemization of Amount Financed.";
(iii) If any portion of the amount financed
				will be used to pay down or pay off other amounts owed by the recipient that
				may change over time, and the amounts owed are known to the provider, the
				provider shall include a short explanation that the amount paid directly to the
				recipient may change if the amount owed for the recipient's other obligations
				changes.
(iv) If, as a condition of
				financing, a recipient's amounts owed to third parties must be paid down or
				paid off using funds from the amount financed, and the amount is not known to
				the provider, the provider shall also include a short explanation that the
				amount paid directly to the recipient may change based upon the required
				disbursements to satisfy other obligations.
(v) If any portion of the amount financed
				will be used to satisfy obligations under another financing with the provider,
				in the third column, in a second paragraph: "Does the renewal financing include
				any amount that is used to pay unpaid finance charges or fees, also known as
				double dipping? {Yes, enter amount}. If the amount is zero, the answer would be
				No." If the financing being satisfied featured a fixed finance fee that did not
				vary based on the repayment period, the provider shall consider the amount that
				is used to pay unpaid finance charges or fees to be the pro rata portion of
				such finance fee based upon the fraction of the original total amount financed
				of the previous financing already repaid by the recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.7 - Sales-based financing-estimated annual percentage rate

Current through Register Vol. 46, No. 28, July 10, 2024
(a) When
				calculating the estimated payments and reasonably anticipated true-ups for
				sales-based financing, a provider shall use the estimated monthly sales, income
				or receipts projection described in section
				600.8(b) of this
				Part or the internal estimated sales projection described in section
				600.9(a)(3) of
				this Part, accounting for:
(1) specified
				payment amounts;
(2) changes to the
				split rate over time;
(3)
				contractual provisions requiring a minimum payment amount;
(4) payments required when the recipient's
				timely payment or series of payments falls below a contracted threshold,
				exclusive of fees incurred as a result of default; and
(5) any other finance charges that may be
				reasonably anticipated based upon the estimated monthly sales projection or the
				provider's internal estimated sales projection.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.8 - Sales-based financing-historical method

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This
				section shall apply only to sales-based financing utilizing the "historical
				method" as described in Financial Services Law section 803.
(b) With respect to any assumptions about a
				recipient's future monthly sales necessary to calculate the disclosures
				required by this Part, a provider shall use the "estimated monthly sales
				projection" described below:
(1) the estimated
				monthly sales projection shall be calculated as the recipient's historical
				average of:
(i) the monthly sales, income or
				receipts volume received through the particular payment channel or mechanism;
				and
(ii) the monthly sales received
				through any other payment channel or mechanism that the financing contract
				would have required recipients to redirect to the particular payment channel or
				mechanism had the financing contract been operative previously;
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.9 - Sales-based financing-opt-in method

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This
				section shall apply only to sales-based financing utilizing the opt-in method
				as described in Financial Services Law section 803.
(b) With respect to any assumptions about a
				recipient's future sales, income or receipts, and as an alternative to the
				methods described in section
				600.8 of this Part for calculating
				disclosures required by this Part, a provider may elect to calculate the
				required disclosures in accordance with this section.
(c) A provider shall calculate the
				disclosures using an internal estimated sales projection through the particular
				payment channel or mechanism designated in the contract.
(d) The internal estimated sales projection
				through the particular payment channel or mechanism shall be calculated using
				the best information reasonably available to the provider.
(e) Once every twelve months, a provider who
				makes disclosures based upon internal estimated sales projections shall conduct
				an internal audit of its commercial financings. The audit shall cover all
				sales-based financings paid off during the previous twelve-month period where
				the provider made disclosures based upon internal estimated sales projections,
				including transactions with contractually required true-up payments, but
				excluding transactions where:
(1) the
				provider or financer initiated legal action against the recipient in court or
				arbitration for breach of the contract or to collect amounts due under the
				contract;
(2) the provider or
				financer stopped collection of amounts due under a contract after determining
				that the recipient had violated the terms of the contract; or
(3) the provider modified the contract terms
				pursuant to an agreement with a recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.10 - Closed-end financing disclosure formatting and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for closed-end financing transactions provided in
				  accordance with Financial Services Law section 804 shall comply with the
				  requirements of this section unless the closed-end financing transaction meets
				  the definition of sales-based financing or lease financing.
(a) The provider shall present the
				disclosures in a table consisting of ten rows and three columns.
(b) The first row of the table shall include
				only the following information:
(1) in the
				first column, the following language: "Funding "Provided";
(2) in the second column, the amount
				financed;
(3) in the third column,
				the following in the order listed and in one paragraph:
(i) "This is how much funding will
				provide.";
(ii) if the amount
				financed is greater than the recipient funds: "Due to deductions or payments to
				others, the total funds that will be provided to you directly is. For more
				information on the amounts that will be deducted, please review the attached
				document Itemization of Amount Financed."
(iii) If any portion of the amount financed
				will be used to pay down or pay off other amounts owed by the recipient that
				may change over time, and the amounts owed are known to the provider, the
				provider shall also include a short explanation that the amount paid directly
				to the recipient may change if the amount owed for the recipient's other
				obligations changes.
(iv) If, as a
				condition of the financing, a recipient's amounts owed to third parties must be
				paid down or paid off using funds from the amount financed, and the amount owed
				is not known to the provider, the provider shall also include a short
				explanation that the amount paid directly to the recipient may change based
				upon the required disbursements to satisfy other obligations.
(v) If any portion of the amount financed
				will be used to satisfy obligations under another financing with the provider,
				in the third column, in a second paragraph: "Does the renewal financing include
				any amount that is used to pay unpaid finance charges or fees, also known as
				double dipping? {Yes, enter amount}. If the amount is zero, the answer would be
				No." If the financing being satisfied featured a fixed finance fee that did not
				vary based on the repayment period, the provider shall consider the amount that
				is used to pay unpaid finance charges or fees to be the pro rata portion of
				such finance fee based upon the fraction of the original total amount financed
				of the previous financing already repaid by the recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.11 - Open-end commercial financing disclosure formatting and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for commercial open-end financings, provided in
				  accordance with Financial Services Law section 805 shall comply with the
				  requirements of this section.
(a) The
				provider shall present the disclosures in a table consisting of twelve rows and
				three columns.
(b) In the first
				row, the first, second and third columns shall be combined, and the resulting
				cell shall have only the following language, in italics:
(1) If the contract allows only for a single
				payment option: "The calculations below are based on an initial draw of your
				full Approved Credit Limit of and assume that you will pay off the draw
				entirely according to the agreed payment schedule, that you miss no payments,
				and that you do not re-draw on this line. Actual costs may differ
				substantially."
(2) If the contract
				allows for multiple payment options: "The calculations below are based on an
				initial draw of your full Approved Credit Limit of and assume that you will
				choose to make minimum payments, that you miss no payments, and that you do not
				re-draw on this line. Actual costs may differ substantially."
(3) If the amount borrowed is payable on
				demand, the provider shall include a short explanation that amounts borrowed
				are payable on demand and that the estimate assumes a term of one
				year.
(4) If an alternate maturity
				date is stated in the legal obligation between the parties, then the provider
				shall include a short explanation that the disclosure is based upon that
				maturity date.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.12 - Factoring transaction disclosure formatting

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for factoring transactions provided in accordance
				  with Financial Services Law section 806 shall comply with the requirements of
				  this section.
(a) The provider shall
				present the required disclosures in a table consisting of eight rows and three
				columns.
(b) The first row of the
				table shall include only the following information:
(1) in the first column, the following
				language: "Funding Provided";
(2)
				in the second column, the amount financed; and
(3) in the third column, and in the order
				listed and in one paragraph: "This is how much will pay when you assign to.";
(i) if the amount financed is greater than
				the recipient funds: "Due to deductions or payments to others, the total funds
				that will be provided to you directly is. For more information on what amounts
				will be deducted, please review the attached document Itemization of Amount
				Financed."
(ii) if any portion of
				the amount financed will be used to pay down or pay off other amounts owed by
				the recipient that may change over time, and the amounts owed are known to the
				provider, the provider shall also include a short explanation that the amount
				paid directly to the recipient may change if the amount owed for the
				recipient's other obligations changes;
(iii) if, as a condition of financing, a
				recipient's amounts owed to third parties must be paid down or paid off using
				funds from the amount financed, and the amount owed is not known to the
				provider, the provider shall also include a short explanation that the amount
				paid directly to the recipient may change based upon the required disbursements
				to satisfy other obligations; and
(iv) if any portion of the amount financed
				will be used to satisfy obligations under another financing with the provider,
				in the third column, in a second paragraph: "Does the renewal financing include
				any amount that is used to pay unpaid finance charges or fees, also known as
				double dipping? {Yes, enter amount}. If the amount is zero, the answer would be
				No." If the financing being satisfied featured a fixed finance fee that did not
				vary based on the repayment period, the provider shall consider the amount that
				is used to pay unpaid finance charges or fees to be the pro rata portion of
				such finance fee based upon the fraction of the original total amount financed
				of the previous financing already repaid by the recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.13 - Additional assumptions for factoring transactions

Current through Register Vol. 46, No. 28, July 10, 2024
When calculating the required disclosures in accordance with
				  section 600.3 of this Part for factoring
				  transactions, to provide a disclosure based upon a single transaction as
				  described by Financial Services Law section 806, the provider shall assume that
				  it will receive full payment of the legally enforceable claim upon the date
				  that legally enforceable claim becomes due and payable.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.14 - Lease financing transaction disclosure formatting and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for lease financing, as defined in section
				  600.1(w) of this
				  Part, shall comply with the requirements of this section.
(a) The provider shall present the
				disclosures in a table consisting of ten rows and three columns.
(b) The first row of the table shall include
				only the following information:
(1) in the
				first column, the following language: "Funding Provided";
(2) in the second column, the amount
				financed; and
(3) in the third
				column:
(i) "This is how much funding will
				provide:";
(ii) if any portion of
				the amount financed will be used to satisfy obligations under another financing
				with the provider, in a second paragraph: "Does the renewal financing include
				any amount that is used to pay unpaid finance charges or fees, also known as
				double dipping? {Yes, enter amount}. If the amount is zero, the answer would be
				No." If the financing being satisfied featured a fixed finance fee that did not
				vary based on the repayment period, the provider shall consider the amount that
				is used to pay unpaid finance charges or fees to be the pro rata portion of
				such finance fee based upon the fraction of the original total amount financed
				of the previous financing already repaid by the recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.16 - Disclosure formatting for all other commercial financing transactions

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosure for commercial financing that does not meet the
				  definition of a closed-end financing transaction, sales- based financing,
				  commercial open-end financing, factoring transaction, lease financing, or
				  asset-based lending transaction, provided in accordance with Financial Services
				  Law section 807, shall comply with the formatting requirements of this
				  section.
(a) The provider shall
				present the required disclosures in a table consisting of ten rows and three
				columns.
(b) The first row of the
				table shall include only the following information:
(1) in the first column, the following
				language: "Funding";
(2) in the
				second column, the amount financed; and
(3) in the third column, the following in the
				order listed and in one paragraph:
(i) "This
				is how much funding will provide.";
(ii) if the amount financed is greater than
				the recipient funds: "Due to deductions or payments to others, the total funds
				that will be provided to you directly is. For more information on the amounts
				that will be deducted, please review the attached document Itemization of
				Amount Financed."
(iii) if any
				portion of the amount owed will be used to pay down or pay off other amounts
				owed by the recipient that may change over time, and the amounts owed are known
				to the provider, the provider shall include a short explanation that the amount
				paid directly to the recipient may change if the amounts owed for the
				recipient's other obligations changes;
(iv) if, as a condition of financing, a
				recipient's amounts owed to third parties must be paid down or paid off using
				funds from the amount financed, and the amount owed is not known to the
				provider, the provider shall also include a short explanation that the amount
				paid directly to the recipient may change based upon the required disbursements
				to satisfy other obligations; and
(v) if any portion of the amount financed
				will be used to satisfy obligations under another financing with the provider,
				in the third column, in a second paragraph: "Does the renewal financing include
				any amount that is used to pay unpaid finance charges or fees, also known as
				double dipping? {Yes, enter amount}. If the amount is zero, the answer would be
				No." If the financing being satisfied featured a fixed finance fee that did not
				vary based on the repayment period, the provider shall consider the amount that
				is used to pay unpaid finance charges or fees to be the pro rata portion of
				such finance fee based upon the fraction of the original total amount financed
				of the previous financing already repaid by the recipient.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.17 - Funding recipient will receive

Current through Register Vol. 46, No. 28, July 10, 2024
(a) When a
				provider provides a disclosure (either directly to the recipient or to a
				broker) under sections
				600.6 through
				600.16 of this Part, and the
				amount financed is greater than the recipient funds, the provider shall also
				provide a disclosure entitled "Itemization of Amount Financed." The disclosure
				shall be substantially similar in form to the example disclosure provided in
				subdivision (b) of this section, including at a minimum:
(1) the recipient funds described as "Amount
				Given Directly to You.";
(2) the
				amount credited to the recipient's account with the financer, described as
				"Amount Paid on your Account with Us," followed by the account number, if
				applicable. Where the amount to be credited to the recipient's account may vary
				based upon changes to the outstanding balance due on a recipient's account, a
				disclosure shall be considered accurate if it is accurate the time disclosure
				is provided;
(3) any amounts paid
				to other persons by the financer on the recipient's behalf, each listed on a
				separate line. The disclosure shall identify those persons. The following
				payees maybe described using generic or other general terms and need not be
				further identified: a recipient's supplier or retailer; public officials or
				government agencies; credit reporting agencies; appraisers; and insurance
				companies. Where an amount disclosed pursuant to this section may change based
				upon changes to the outstanding balance due under the recipient's other
				obligations, a provider's disclosure of a payoff amount shall be considered
				accurate if it is accurate at the time the disclosure is provided;
(4) the sum of the amounts described in
				subdivisions (a)(1), (2), and (3) of this section, described as "Amount
				Provided to You or on Your Behalf," followed by a reference to how the amount
				was calculated (e.g. "Sum of Items 1-7.");
(5) the prepaid finance charge, described as
				"Prepaid Finance Charge" or "prepaid Finance Charges," as applicable, followed
				by a description of the purpose of the charge or charges (e.g. "Brokerage
				Fee"); and
(6) the amount financed,
				described as "Amount Financed," followed by a reference to how the amount was
				calculated (e.g. "Item 5 minus Item 4.")
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.18 - Signatures

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Pursuant to
				Financial Services Law section 809, prior to consummating a commercial
				financing, a provider shall obtain the recipient's signature, which may be
				fulfilled by an electronic signature, on all disclosures required to be
				presented to the recipient pursuant to the CFDL. Where the recipient is not a
				natural person, a natural person authorized to sign on behalf of the legal
				entity may sign the disclosure, provided that the natural person is not a
				broker. Such disclosures may be transmitted between the recipient and the
				provider via electronic transmission and utilizing electronic signatures,
				regardless of whether subsequent financing agreements, amendments and
				supplements are provided to the recipient in person, by mail or
				electronically.
(b) If a commercial
				financing transaction is consummated electronically, then a provider may obtain
				a recipient's signature on the required disclosures electronically or by
				facsimile.
(c) A provider is not
				required to obtain the recipient's signature on any disclosure for a commercial
				financing transaction that is not consummated. When a provider provides
				multiple disclosures to a recipient during the negotiation of a commercial
				financing transaction that is ultimately consummated, the provider need only
				obtain the recipient's signature on the final disclosure that corresponds to
				the consummated transaction.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.19 - Thresholds for disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
For the purpose of determining whether the amount of a
				  commercial financing offer is equal to or less than $2,500,000, a provider
				  shall comply with the requirements of this section.
(a) For open-end financing, use the approved
				credit limit.
(b) For asset-based
				lending transactions:
(1) use the approved
				credit limit if the transaction meets all of the following requirements:
(i) the provider offers the recipient an
				agreement that describes the general terms and conditions of the commercial
				financing transaction that will occur under the agreement;
(ii) the approved credit limit exceeds
				$2,500,000; and
(iii) the parties
				to the asset-based lending transaction agree in writing that an amount
				exceeding $2,500,000 is reasonably expected to be advanced to the recipient and
				outstanding at some point during the agreement, and such agreement is made in
				writing before the execution of the financing agreement, before any amendment
				to an agreement entered into before the effective date of the CFDL, or before
				any amendment increasing the approved credit limit for a consummated financing
				agreement to an amount exceeding $2,500,000; and
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.20 - Commercial financings with multiple payment options/balances payable on demand

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For commercial financings that offer
				multiple payment options to the recipient, the provider shall calculate
				required disclosures based upon the minimum payments allowed under the
				contract.
(b) For commercial
				financings where the balance due is payable on demand, the provider shall
				calculate required disclosures based upon an assumed term of one year unless
				the provider reasonably anticipates that the balance will be repaid more
				quickly. If an alternate maturity date is stated in the legal obligation
				between the parties, then the disclosures shall be based on that
				date.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.21 - Duties of financers and brokers, and additional duties of providers

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A financer
				shall:
(1) provide a copy of compliant
				disclosures to a broker, whenever a financer provides a broker with specific
				commercial financing offer;
(2)
				maintain a copy of the evidence of transmission of the disclosures provided by
				a broker to the financer in compliance with subdivision (b) of this section for
				a period of at least four years following the date that the disclosure is
				presented to the recipient; and
(3)
				develop procedures reasonably designed to ensure that recipients receive the
				disclosures required pursuant to subdivision (a)(1) of this section at the time
				that a broker provides a specific commercial financing offer to a recipient.
				These procedures may include:
(i) contractual
				requirements that brokers timely provide to the financer documentation of
				transmission of the disclosure (including timing of transmission) to the
				recipient;
(ii) timely
				investigation of facts that would give a financer reasonable notice that a
				broker has not provided disclosures to recipients as required by subdivision
				(b) of this section; and
(iii)
				discontinuation of relationships with any broker who the financer has found to
				have engaged in a pattern of noncompliance with subdivision (b) of this
				section.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.22 - Reporting

Current through Register Vol. 46, No. 28, July 10, 2024
(a) On or
				before the thirtieth day of April each year, beginning in 2025, each provider
				subject to the CFDL that, during the preceding calendar year, has utilized the
				opt-in method of calculating estimated APR, as described in section
				600.9 of this Part, shall report
				to the superintendent, in a statement subscribed and affirmed as true under
				penalties of perjury, the information requested by the superintendent covering
				the period of the preceding calendar year.
(b) The report shall include:
(1) for each commercial financing transaction
				undertaken as defined by the CFDL, the estimated annual percentage rates
				disclosed to the recipient and actual retrospective annual percentage rates of
				completed transactions;
(2) the
				annual mean of all differences between the estimated annual percentage rates
				disclosed to the recipient and actual retrospective annual percentage rates of
				completed transactions, which mean shall be reported both weighted by financing
				amount, and unweighted;
(3) a
				statement of any unusual and extraordinary circumstances impacting the
				provider's deviation between estimated and actual annual percentage rate;
				and
(4) such other information
				prescribed by the superintendent as necessary or appropriate for the purpose of
				making a determination of whether the deviation between the estimated annual
				percentage rate and actual retrospective annual percentage rates of completed
				transactions was reasonable.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.23 - Assignment of Commercial Financing Agreements

Current through Register Vol. 46, No. 28, July 10, 2024
Each recipient may discharge its payment obligations under
				  any commercial financing by paying the original obligee under such financing
				  until, but not after, the recipient receives a notification, authenticated by
				  the original obligee or the obligee's assignee, that the amount due or to
				  become due has been assigned and the payment is to be made to the
				  assignee.