All Things Newz
Law \ Legal

New York Publishes Proposed Rules On Commercial Financing Disclosures – Financial Services



To print this article, all you need is to be registered or login on Mondaq.com.

On September 14, the New York Department of Financial Services
(NYDFS) published a notice of proposed rules under New York’s Commercial
Financing Disclosure Law (CFDL) (we discussed this previous
rulemaking in a blog post here). Under the CFDL, commercial finance
companies are required to give consumer-style loan disclosures to
potential recipients when a specific offering of finance is
extended for certain commercial transactions of $2.5 million or
less. We note some items in particular from the latest proposed
rule:

  • An additional requirement that if the finance company is
    operated out of New York, then the New York disclosure law applies
    to all their transactions, across the entire country, mostly
    without regard to where the borrower is located or managed
    from.

  • Continued overlap with similar California regulations (we
    discussed the California regulations in previous blog posts here and here). The NYDFS did confirm its intent to align with California where it is
    possible.

  • An additional notice requirement for the transfer of servicing
    by the servicer of a commercial financing.

Note that while financial institutions such as banks, trust
companies, industrial loan companies, federally chartered savings
and loan associations, federal savings banks, or federal credit
unions are exempt, there is no exemption for bank subsidiaries in
New York and California.

Public comments on the proposed rule are due on or before
October 29, 2022.

Putting It Into Practice: As the New York
regulations continue to come into shape, companies will need to
thoroughly review the New York and California regulations to ensure
that they prepare and timely deliver compliant disclosure forms in
each state.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from United States

Healthcare Regulatory Check-Up | August 2022

McDermott Will & Emery

In 2018, a Missouri neurosurgeon was found guilty and ordered to pay almost $5.5 million for violating the AKS by submitting claims for the use of spinal implants that were distributed…



Source link

Related posts

Intragroup OTC Derivatives Exemption – Commodities/Derivatives/Stock Exchanges

Horace Hayward

Voluntary assisted dying (euthanasia) in New South Wales – Crime

Horace Hayward

SRO in Victoria issues draft ruling on service fees and the economic entitlement provisions – Property Taxes

Horace Hayward