N.Y. Financial Services Law § 804: Closed-end commercial financing disclosure requirements

§ 804. Closed-end commercial financing disclosure requirements. A

provider, subject to this article, shall provide the following

disclosures to a recipient at the time of extending a specific offer for

closed-end financing according to formatting prescribed by the

superintendent:

(a) The total amount of the commercial financing, and the disbursement

amount, if different from the financing amount, after any fees deducted

or withheld at disbursement.

(b) The finance charge.

(c) The annual percentage rate, using only the words annual percentage

rate or the abbreviation "APR", expressed as a yearly rate, inclusive of

any fees and finance charges that cannot be avoided by a recipient, and

calculated in accordance with the federal Truth in Lending Act,

Regulation Z, 12 C.F.R. § 1026.22, regardless of whether such act or

such regulation would require such a calculation.

(d) The total repayment amount, which is the disbursement amount plus

the finance charge.

(e) The term of the financing.

(f) The payment amounts:

(i) for payment amounts that are fixed, the payment amounts and

frequency (e.g., daily, weekly, monthly), and, if the term is longer

than one month, the average monthly payment amount; or

(ii) for payment amounts that are variable, a full payment schedule or

a description of the method used to calculate the amounts and frequency

of payments, and, if the term is longer than one month, the estimated

average monthly payment amount.

(g) A description of all other potential fees and charges that can be

avoided by the recipient, including, but not limited to, late payment

fees and returned payment fees.

(h) Were the recipient to elect to pay off or refinance the commercial

financing prior to full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges

other than interest accrued since their last payment. If so, disclosure

of the percentage of any unpaid portion of the finance charge and

maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional

fees not already included in the finance charge.

(i) A description of collateral requirements or security interests, if

any.