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This entry was published on 2022-01-07
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Closed-end commercial financing disclosure requirements
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 8
§ 804. Closed-end commercial financing disclosure requirements. A
provider, subject to this article, shall provide the following
disclosures to a recipient at the time of extending a specific offer for
closed-end financing according to formatting prescribed by the

(a) The total amount of the commercial financing, and the disbursement
amount, if different from the financing amount, after any fees deducted
or withheld at disbursement.

(b) The finance charge.

(c) The annual percentage rate, using only the words annual percentage
rate or the abbreviation "APR", expressed as a yearly rate, inclusive of
any fees and finance charges that cannot be avoided by a recipient, and
calculated in accordance with the federal Truth in Lending Act,
Regulation Z, 12 C.F.R. § 1026.22, regardless of whether such act or
such regulation would require such a calculation.

(d) The total repayment amount, which is the disbursement amount plus
the finance charge.

(e) The term of the financing.

(f) The payment amounts:

(i) for payment amounts that are fixed, the payment amounts and
frequency (e.g., daily, weekly, monthly), and, if the term is longer
than one month, the average monthly payment amount; or

(ii) for payment amounts that are variable, a full payment schedule or
a description of the method used to calculate the amounts and frequency
of payments, and, if the term is longer than one month, the estimated
average monthly payment amount.

(g) A description of all other potential fees and charges that can be
avoided by the recipient, including, but not limited to, late payment
fees and returned payment fees.

(h) Were the recipient to elect to pay off or refinance the commercial
financing prior to full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges
other than interest accrued since their last payment. If so, disclosure
of the percentage of any unpaid portion of the finance charge and
maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional
fees not already included in the finance charge.

(i) A description of collateral requirements or security interests, if