§ 804 — Closed-end commercial financing disclosure requirements

New York § 804

• Jurisdiction: New York
• Law FIS: Financial Services Law
• Art. 8: Commercial Financing

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§ 804. Closed-end commercial financing disclosure requirements. A\nprovider, subject to this article, shall provide the following\ndisclosures to a recipient at the time of extending a specific offer for\nclosed-end financing according to formatting prescribed by the\nsuperintendent:\n (a) The total amount of the commercial financing, and the disbursement\namount, if different from the financing amount, after any fees deducted\nor withheld at disbursement.\n (b) The finance charge.\n (c) The annual percentage rate, using only the words annual percentage\nrate or the abbreviation "APR", expressed as a yearly rate, inclusive of\nany fees and finance charges that cannot be avoided by a recipient, and\ncalculated in accordance with the federal Truth in Lending Act,\nRegulation Z, 12 C.F.R. § 1026.22, regardless of whether such act or\nsuch regulation would require such a calculation.\n (d) The total repayment amount, which is the disbursement amount plus\nthe finance charge.\n (e) The term of the financing.\n (f) The payment amounts:\n (i) for payment amounts that are fixed, the payment amounts and\nfrequency (e.g., daily, weekly, monthly), and, if the term is longer\nthan one month, the average monthly payment amount; or\n (ii) for payment amounts that are variable, a full payment schedule or\na description of the method used to calculate the amounts and frequency\nof payments, and, if the term is longer than one month, the estimated\naverage monthly payment amount.\n (g) A description of all other potential fees and charges that can be\navoided by the recipient, including, but not limited to, late payment\nfees and returned payment fees.\n (h) Were the recipient to elect to pay off or refinance the commercial\nfinancing prior to full repayment, the provider must disclose:\n (i) whether the recipient would be required to pay any finance charges\nother than interest accrued since their last payment. If so, disclosure\nof the percentage of any unpaid portion of the finance charge and\nmaximum dollar amount the recipient could be required to pay; and\n (ii) whether the recipient would be required to pay any additional\nfees not already included in the finance charge.\n (i) A description of collateral requirements or security interests, if\nany.\n