New York Codes, Rules and Regulations
Title 23 - FINANCIAL SERVICES
Chapter I - Regulations of the Superintendent of Financial Services
Part 600
Section 600.19 - Thresholds for disclosure
Universal Citation: 600.19 NY Comp Codes Rules and Regs ยง 600.19
Current through Register Vol. 46, No. 52, December 24, 2024
For the purpose of determining whether the amount of a commercial financing offer is equal to or less than $2,500,000, a provider shall comply with the requirements of this section.
(a) For open-end financing, use the approved credit limit.
(b) For asset-based lending transactions:
(1) use the approved
credit limit if the transaction meets all of the following requirements:
(i) the provider offers the recipient an
agreement that describes the general terms and conditions of the commercial
financing transaction that will occur under the agreement;
(ii) the approved credit limit exceeds
$2,500,000; and
(iii) the parties
to the asset-based lending transaction agree in writing that an amount
exceeding $2,500,000 is reasonably expected to be advanced to the recipient and
outstanding at some point during the agreement, and such agreement is made in
writing before the execution of the financing agreement, before any amendment
to an agreement entered into before the effective date of the CFDL, or before
any amendment increasing the approved credit limit for a consummated financing
agreement to an amount exceeding $2,500,000; and
(2) if the asset-based lending transaction
does not meet all of the requirements listed in subdivision (b)(1) of this
section, then the commercial financing offer shall be considered less than or
equal to $2,500,000.
(c) For a factoring transaction,
(1) use the
approved advance limit if the transaction meets all of the following
requirements:
(i) the provider offers the
recipient an agreement that describes the general terms and conditions of the
commercial financing transaction that will occur under the agreement;
(ii) the approved advance limit exceeds
$2,500,000; and
(iii) the parties
to the factoring transaction agree in writing that at some point during the
agreement, an amount exceeding $2,500,000 is reasonably expected to be advanced
to the recipient and outstanding for legally enforceable claims that have not
yet been paid at some point during the agreement and such agreement is made in
writing before the execution of the financing agreement, before any amendment
to an agreement enter into before the effective date of this Part, or before
any amendment increasing the approved credit limit for a consummated financing
agreement to an amount exceeding $2,500,000; and
(2) if the factoring transaction does not
meet all of the requirements listed in subdivision (c)(1) of this section, then
the commercial financing offer shall be considered less than or equal to
$2,500,000.
(d) In all other transactions, use the amount financed.
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