N.Y. Comp. Codes R. & Regs. tit. 23 § 600.7

Current through Register Vol. 46, No. 36, September 4, 2024

Section 600.7 - Sales-based financing-estimated annual percentage rate

(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.

(b) When calculating estimated monthly cost, finance charge, term, and annual percentage rate for the salesbased financing, a provider shall use the estimated monthly, income or receipts sales projection described in section 600.8(b) of this Part, or internal estimated sales projection described in section 600.9(a)(3) of this Part, accounting for the following:

(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;

(5) reasonably anticipated true-ups; and

(6) any other finance charges that may be reasonably anticipated based upon the estimated monthly sales projection. Section

N.Y. Comp. Codes R. & Regs. Tit. 23 § 600.7

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