N.Y. Comp. Codes R. & Regs. tit. 23 § 600.3

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

Section 600.3 - Annual percentage rate disclosure

(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.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 600.3

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