New York State Senate, Bill S5470-B (2019-2020 session), Financial Services Law Art. 8

Summary

New York State Senate Bill S5470B (2019-2020 session), sponsored by Kevin Thomas, requires certain providers that extend specific terms of commercial financing to a recipient to disclose information about the offer. The summary lists the financing amount, finance charges, the annual percentage rate, the total repayment amount, the term, payment amounts, other potential fees, any prepayment costs and a description of any collateral requirements. The bill adds Article 8 (Commercial Financing) to the Financial Services Law. The page shows status Signed By Governor, with a Dec 23, 2020 action of approval memo and signed, and a Senate floor vote of Aye 43 Nay 17.

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“New York State Senate, Bill S5470-B (2019-2020 session), Financial Services Law Art. 8.” Original at www.nysenate.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/new-york-state-senate-bill-s5470-b-2019-2020-session-financial-service-0483b96154/, SHA-256 b0ada78aaf7ede3a7bc7a6852411654167aa2731012653e2b92e3857b0e0e4d8.

Full text

Senate
Bill
S5470B

Signed By Governor

2019-2020 Legislative Session

Requires certain providers that extend specific terms of commercial financing to a recipient to disclose certain information about the offer to the recipient

download bill text pdf

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Sponsored By

Kevin Thomas

(D) Senate District

Archive: Last
Bill Status
- Signed by Governor

- Introduced
- In Committee Assembly In Committee Senate
- On Floor Calendar Assembly On Floor Calendar Senate
- Passed Assembly Passed Senate
- Delivered to Governor
- Signed By Governor

Actions

Date of Action | Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 23, 2020 | approval memo.65 signed chap.369
Dec 11, 2020 | delivered to governor
Jul 23, 2020 | returned to senate passed assembly ordered to third reading rules cal.264 substituted for a10118a referred to codes delivered to assembly passed senate
Jul 22, 2020 | ordered to third reading cal.886
Jul 21, 2020 | reported and committed to rules
Jul 13, 2020 | print number 5470b
Jul 13, 2020 | amend and recommit to banks
Mar 13, 2020 | print number 5470a
Mar 13, 2020 | amend (t) and recommit to banks
Jan 08, 2020 | referred to banks
May 01, 2019 | referred to banks

Votes

- Jul 23, 2020
-
Floor
Vote S5470B Aye 43 Nay 17 Absent 0 Excused 0 Abstained 0 Jul 22, 2020
-
Rules Committee
Vote S5470B Aye 12 Nay 4 Aye with Reservations 3 Absent 0 Excused 0 Abstained 0 Rules Committee
Vote:
Jul 22, 2020 aye
(12) nay
(4) aye wr
(3) Jul 21, 2020
-
Banks Committee
Vote S5470B Aye 8 Nay 2 Aye with Reservations 1 Absent 0 Excused 0 Abstained 0 Banks Committee
Vote:
Jul 21, 2020 aye
(8) nay
(2) aye wr
(1)

Bill Amendments

Original

B
(Active)

2019-S5470

- Details

See Assembly Version of this Bill:

A10118

Law Section:

Financial Services Law

Laws Affected:

Add Art 8 §§801 - 812, Fin Serv L

2019-S5470

- Summary

Requires certain providers that extend specific terms of commercial financing to a recipient to disclose certain information about the offer to the recipient, including information concerning the financing amount, finance charges, the annual percentage rate, the total repayment amount, the term, payment amounts, other potential fees, any prepayment costs and a description of any collateral requirements.

2019-S5470

- Sponsor Memo

BILL NUMBER: S5470

SPONSOR: THOMAS
TITLE OF BILL: An act to amend the financial services law, in
relation to commercial financing disclosures

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to require greater transparency from commer-
cial financing providers consistently across financing products.

SUMMARY OF PROVISIONS:

Section 701 of the new Article 7 provides definitions of relevant terms
to be used in this act.

Section 702 of the new Article 7 provides exemptions from the disclosure
requirements for financial institutions, technology service providers to
other exempted entities, lenders regulated under the Federal Farm Credit
Act; commercial financing transaction secured by real property, and

2019-S5470

- Bill Text download pdf

S T A T E O F N E W Y O R K
________________________________________________________________________

5470

2019-2020 Regular Sessions

I N S E N A T E

May 1, 2019
___________

Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks

AN ACT to amend the financial services law, in relation to commercial
financing disclosures

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

Section 1. The financial services law is amended by adding a new arti-
cle 7 to read as follows:
ARTICLE 7
COMMERCIAL FINANCING
SECTION 701. DEFINITIONS.
702. EXEMPTIONS.
703. PURCHASE AND SALE DISCLOSURE REQUIREMENTS.
704. CLOSED-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
705. OPEN-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
706. ADDITIONAL INFORMATION.
707. ESTIMATES.
708. PENALTIES.
§ 701. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
(A) "ACCOUNTS RECEIVABLE PURCHASE" MEANS A PURCHASE AND SALE TRANS-
ACTION IN WHICH ONE OR MORE DESIGNATED ACCOUNTS ARE ASSIGNED TO THE
PURCHASER BY THE SELLER AT A SPECIFIED DISCOUNT RATE. FOR PURPOSES OF
THIS ARTICLE, "ACCOUNT" SHALL HAVE THE MEANING ASSIGNED TO THAT TERM IN
PARAGRAPH TWO OF SUBSECTION (A) OF SECTION 9-102 OF THE UNIFORM COMMER-
CIAL CODE. AN ACCOUNTS RECEIVABLE PURCHASE INCLUDES, BUT IS NOT LIMITED
TO, A FACTORING TRANSACTION.
(B) "COMMERCIAL FINANCING" MEANS AN ACCOUNTS RECEIVABLE PURCHASE,
FUTURE RECEIVABLES PURCHASE, COMMERCIAL LINE OF CREDIT OR COMMERCIAL
LOAN, THE PROCEEDS OF WHICH THE RECIPIENT DOES NOT INTEND TO USE PRIMA-
RILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. FOR PURPOSES OF DETER-
MINING WHETHER A FINANCING IS A COMMERCIAL FINANCING, THE PROVIDER MAY

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.

co-Sponsors

David Carlucci

(D) Senate District

Anna M. Kaplan

(D, IP, WF) Senate District

Jessica Ramos

(D, WF) 13th Senate District

2019-S5470A

- Details

See Assembly Version of this Bill:

A10118

Law Section:

Financial Services Law

Laws Affected:

Add Art 8 §§801 - 812, Fin Serv L

2019-S5470A

- Summary

2019-S5470A

- Sponsor Memo

BILL NUMBER: S5470a

SPONSOR: THOMAS
TITLE OF BILL:

An act to amend the financial services law, in relation to requiring
certain providers that extend specific terms of commercial financing to
a recipient to disclose certain information about the offer to the
recipient

PURPOSE OR GENERAL IDEA OF THE BILL:

This bill would require certain providers of commercial financing to
disclose information regarding the amount, pricing, and terms to borrow-
ers prior to accepting the financing.

SUMMARY OF PROVISIONS:

Section one of the bill amends the financial services by adding a new
article 7 as it relates to requiring providers of commercial financing
to disclose certain information to the borrower including cost of

2019-S5470A

- Bill Text download pdf

S T A T E O F N E W Y O R K
________________________________________________________________________

5470--A

2019-2020 Regular Sessions

I N S E N A T E

May 1, 2019
___________

Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks -- recommitted to
the Committee on Banks in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee

AN ACT to amend the financial services law, in relation to requiring
certain providers that extend specific terms of commercial financing
to a recipient to disclose certain information about the offer to the
recipient

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

Section 1. The financial services law is amended by adding a new arti-
cle 7 to read as follows:
ARTICLE 7
COMMERCIAL FINANCING
SECTION 701. DEFINITIONS.
702. EXEMPTIONS.
703. SALES-BASED FINANCING DISCLOSURE REQUIREMENTS.
704. CLOSED-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
705. OPEN-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
706. ACCOUNTS RECEIVABLE TRANSACTION DISCLOSURE REQUIREMENTS.
707. OTHER FORMS OF FINANCING DISCLOSURE REQUIREMENTS.
708. DISCLOSURE REQUIREMENTS FOR RENEWAL FINANCING.
709. REQUIRED SIGNATURE.
710. ADDITIONAL INFORMATION.
711. RULES AND REGULATIONS.
712. PENALTIES.
§ 701. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
(A) "ACCOUNTS RECEIVABLE TRANSACTION" MEANS AN ACCOUNTS RECEIVABLE
PURCHASE TRANSACTION, INCLUDING FACTORING TRANSACTIONS, THAT INCLUDES AN
AGREEMENT TO PURCHASE, TRANSFER, OR SELL A LEGALLY ENFORCEABLE CLAIM FOR

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.

co-Sponsors

David Carlucci

(D) Senate District

Anna M. Kaplan

(D, IP, WF) Senate District

John C. Liu

(D) 16th Senate District

Zellnor Myrie

(D) 20th Senate District

Jessica Ramos

(D, WF) 13th Senate District

2019-S5470B
(ACTIVE)
- Details

See Assembly Version of this Bill:

A10118

Law Section:

Financial Services Law

Laws Affected:

Add Art 8 §§801 - 812, Fin Serv L

2019-S5470B
(ACTIVE)
- Summary

2019-S5470B
(ACTIVE)
- Sponsor Memo

BILL NUMBER: S5470B

SPONSOR: THOMAS
TITLE OF BILL:

PURPOSE OR GENERAL IDEA OF THE BILL:

This bill would require certain providers of commercial financing to
disclose information regarding the amount, pricing, and terms to borrow-
ers prior to accepting the financing.

SUMMARY OF PROVISIONS:

Section one of the bill amends the financial services law by adding a
new Article 8 that requires providers of commercial financing to
disclose certain information to the borrower upon a specific offer of

2019-S5470B
(ACTIVE)
- Bill Text download pdf

S T A T E O F N E W Y O R K
________________________________________________________________________

5470--B

2019-2020 Regular Sessions

I N S E N A T E

May 1, 2019
___________

Introduced by Sens. THOMAS, CARLUCCI, KAPLAN, RAMOS -- read twice and
ordered printed, and when printed to be committed to the Committee on
Banks -- recommitted to the Committee on Banks in accordance with
Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

Section 1. The financial services law is amended by adding a new arti-
cle 8 to read as follows:
ARTICLE 8
COMMERCIAL FINANCING
SECTION 801. DEFINITIONS.
802. EXEMPTIONS.
803. SALES-BASED FINANCING DISCLOSURE REQUIREMENTS.
804. CLOSED-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
805. OPEN-END COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS.
806. FACTORING TRANSACTION DISCLOSURE REQUIREMENTS.
807. OTHER FORMS OF FINANCING DISCLOSURE REQUIREMENTS.
808. DISCLOSURE REQUIREMENTS FOR RENEWAL FINANCING.
809. REQUIRED SIGNATURE.
810. ADDITIONAL INFORMATION.
811. RULES AND REGULATIONS.
812. PENALTIES.
§ 801. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11387-05-0

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