N.Y. Banking Law § 736: Definitions

* § 736. Definitions. As used in this article, the following terms

shall have the following meanings:

1. "Authorized buy-now-pay-later lender" means a buy-now-pay-later

lender authorized by the superintendent pursuant to subdivision two of

section seven hundred thirty-seven of this article.

2. "Consumer" means an individual who is a resident of the state of

New York.

3. "Buy-now-pay-later loan" means closed-end credit provided to a

consumer in connection with such consumer's particular purchase of goods

and/or services, other than a motor vehicle as defined under section one

hundred twenty-five of the vehicle and traffic law. A "buy-now-pay-later

loan" does not include credit where the creditor is the seller of such

goods and/or services, unless it is credit pursuant to an agreement

whereby, at a consumer's request, the creditor purchases a specific good

and/or service from a seller and resells such specific good and/or

service to such consumer on closed-end credit. A "buy-now-pay-later

loan" shall include the following categories of such loans:

(a) "Buy-now-pay-later zero-interest loan" means a buy-now-pay-later

loan payable in one or more installments without any interest or finance

charge;

(b) "Buy-now-pay-later installment loan" means a buy-now-pay-later

loan with either interest or finance charges or both; and

(c) Any other subset of buy-now-pay-later loans the superintendent may

classify as a separate category by regulation.

4. "Buy-now-pay-later lender" means a person who offers

buy-now-pay-later loans in this state. For purposes of the preceding

sentence, "offer" means offering to make a buy-now-pay-later loan by

extending credit directly to a consumer or operating a platform,

software or system with which a consumer interacts and the primary

purpose of which is to allow third parties to offer buy-now-pay-later

loans, or both. A person shall not be considered a buy-now-pay-later

lender on the basis of isolated, incidental or occasional transactions

which otherwise meet the definitions of this section.

5. "Exempt organization" means any national bank, federal savings

bank, federal savings and loan association, federal credit union,

federal trust company, or foreign banking corporation licensed by the

comptroller of the currency to transact business in this state.

6. "Licensee" means a person who has been issued a license under this

article.

7. "Person" means an individual, partnership, corporation, association

or any other business organization.

* NB Effective upon the one hundred eightieth day after the

promulgation of rules and/or regulations by the department of financial

services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §

13)