N.Y. Financial Services Law § 807: Other forms of financing disclosure requirements

§ 807. Other forms of financing disclosure requirements. The

superintendent may require disclosure by a provider extending a specific

offer of commercial financing which is not open-end financing,

closed-end financing, sales-based financing, or factoring transaction

but otherwise meets the definition of commercial financing as provided

in this article. Subject to such rules and regulations by the

superintendent, a provider subject to this article shall provide the

following disclosures to a recipient at the time of extending a specific

offer of other forms of 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, and calculated in accordance with the

relevant sections of the federal Truth in Lending Act, Regulation Z or

this article, 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 the average monthly

payment amount; or

(ii) for payment amounts that are variable, 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, 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.