N.Y. Financial Services Law § 805: Open-end commercial financing disclosure requirements

§ 805. Open-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

open-end financing according to formatting prescribed by the

superintendent:

(a) The maximum amount of credit available to the recipient (e.g., the

credit line amount), and the amount scheduled to be drawn by the

recipient at the time the offer is extended, if any, less 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 nominal 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 and based on the maximum

amount of credit available to the recipient and the term resulting from

making the minimum required payments term as disclosed, regardless of

whether such act or such regulation would require such a calculation.

(d) The total repayment amount, which is the draw amount, less any

fees deducted or withheld at disbursement, plus the finance charge. The

total repayment amount shall assume a draw amount equal to the maximum

amount of credit available to the recipient if drawn and held for the

duration of the term or draw period.

(e) The term of the plan, if applicable, or the period over which a

draw is amortized.

(f) The payment frequency and amounts, based on the assumptions used

in the calculation of the annual percentage rate, including a

description of payment amount requirements such as a minimum payment

amount, and if the payment frequency is other than monthly, the amount

of the average projected payments per month. For payment amounts that

are variable, the provider should include a payment schedule, or a

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

payments, and 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, draw fees, 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.