N.Y. Comp. Codes R. & Regs. tit. 23 § 600.0

Current through Register Vol. 46, No. 43, October 23, 2024

Section 600.0 - Introduction

(a) Financial Services Law sections 801, 802, 803, 804, 805, 806, 807, 808, 809, 810, and 811 (defined in section 600.1(l) as the Commercial Finance Disclosure Law (CFDL)) require providers of commercial financing that are subject to the CFDL to provide disclosures to potential recipients of commercial financing, at the time a specific offer of financing is extended to a recipient.

(b) Pursuant to the CFDL, the superintendent has the power to promulgate regulations that:

(1) include in the definition of "finance charge" set forth in Financial Services Law section 801(e) "any charges as determined by the superintendent";

(2) prescribe the formatting of sales-based financing disclosure requirements, pursuant to Financial Services Law section 803;

(3) prescribe a review process under which providers utilizing the opt-in method of calculating estimated annual percentage rate (APR) report data to the superintendent of estimated annual percentage rates disclosed to the recipient and actual retrospective annual percentage rates of completed transactions, pursuant to Financial Services Law section 803(c)(ii), and also:

(i) prescribe the information to be contained in such report 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; and

(ii) establish a method of such reporting;

(4) prescribe the formatting of closed-end financing disclosure requirements pursuant to Financial Services Law section 804;

(5) prescribe the formatting of open-end commercial financing disclosure requirements pursuant to Financial Services Law section 805;

(6) prescribe the formatting of factoring transaction disclosure requirements pursuant to Financial Services Law section 806;

(7) require disclosure by a provider extending a specific offer of commercial financing that is not openend financing, closed-end financing, sales-based financing, or factoring transaction but otherwise meets the definition of commercial financing, and prescribe the formatting of such disclosures, pursuant to Financial Services Law section 807; and

(8) pursuant to Financial Services Law section 811, promulgate any other rules and regulations as may be consistent with the purposes of the CFDL, or appropriate for the effective administration of the CFDL, including such rules and regulations:

(i) in connection with the calculation or determination of any metric required to be disclosed to a recipient;

(ii) as necessary to develop and prescribe disclosure formatting to be used by providers that allows for recipients to easily compare financing options in a clear and conspicuous manner;

(iii) as may define the terms used in the CFDL and as may be necessary and appropriate to interpret and implement the provisions of the CFDL; and

(iv) as may be necessary for the enforcement of the CFDL.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 600.0

Adopted New York State Register February 1, 2023/Volume XLV, Issue 05, eff. 2/1/2023