New York Codes, Rules and Regulations
Title 23 - FINANCIAL SERVICES
Chapter I - Regulations of the Superintendent of Financial Services
Part 600
Section 600.7 - Sales-based financing-estimated annual percentage rate

Universal Citation: 600.7 NY Comp Codes Rules and Regs ยง 600.7

Current through Register Vol. 46, No. 39, September 25, 2024

(a) When calculating the estimated payments and reasonably anticipated true-ups for sales-based financing, a provider shall use the estimated monthly sales, income or receipts projection described in section 600.8(b) of this Part or the internal estimated sales projection described in section 600.9(a)(3) of this Part, accounting for:

(1) specified payment amounts;

(2) changes to the split rate over time;

(3) contractual provisions requiring a minimum payment amount;

(4) payments required when the recipient's timely payment or series of payments falls below a contracted threshold, exclusive of fees incurred as a result of default; and

(5) any other finance charges that may be reasonably anticipated based upon the estimated monthly sales projection or the provider's internal estimated sales projection.

(b) When calculating estimated monthly cost, finance charge, term, and annual percentage rate for the salesbased financing, a provider shall use the estimated monthly, income or receipts sales projection described in section 600.8(b) of this Part, or internal estimated sales projection described in section 600.9(a)(3) of this Part, accounting for the following:

(1) specified payment amounts;

(2) changes to the split rate over time;

(3) contractual provisions requiring a minimum payment amount;

(4) payments required when the recipient's timely payment or series of payments falls below a contracted threshold, exclusive of fees incurred as a result of default;

(5) reasonably anticipated true-ups; and

(6) any other finance charges that may be reasonably anticipated based upon the estimated monthly sales projection. Section

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