New York Commercial Finance Disclosure Law
On December 23, 2020, then Governor Andrew Cuomo signed into law NY CLS Fin Serv §§ 801-812 (the “Disclosure Law”) with the intended purpose of “requiring certain providers that extend specific terms of commercial financing to a recipient to disclose certain information about the offer to the recipient.” Although the law was slated to take effect January 1, 2022, the New York Department of Financial Services (“DFS”) issued a guidance on December 31, 2021, stating that the “obligations do not arise until the [DFS] issues final implementing regulations and those regulations take effect.” Given the latest regulations proposed by DFS provide for a compliance date six months after publication of the Notice of Adoption in the State Register, companies have until at least the summer of 2022 to comply with the Disclosure Law.