New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 600 › Section 600.15 - General asset-based lending transaction disclosure formatting and contents

Current through Register Vol. 46, No. 28, July 10, 2024
Disclosures for asset-based lending transactions, 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 twelve rows and three columns.
(b) All three columns of the first row of the
				table shall be combined, and within the cell created, the provider shall
				provide an explanation, in italics, of all assumptions used to calculate the
				disclosures, and a notice, if applicable, that actual costs may differ
				substantially from those disclosed. For example: "The calculations below assume
				you draw at origination, you maintain an outstanding balance of that amount
				for, and that the amount owed us is paid off thereafter according to the terms
				of the contract. Actual costs may differ substantially."
(c) The second 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 the same paragraph:
(i) "This is the maximum amount of 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 if you request
				the maximum amount 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 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.
(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.