New York Department Of Financial Services Extends The Effective Date Of The State’s Commercial Finance Disclosure Legislation

On December 31, 2021 the New York State Department of Financial Services (“DFS”) announced (see link here) that as final regulations have yet to be adopted by the DFS providing regulatory guidance regarding the standardized disclosures about the terms of credit to be provided  under the State’s Commercial Finance Disclosure Law (“CDFL”) all obligations under the CDFL (which became effective on January 1, 2022) will not go into effect until the DFS has issued final regulations and these regulations take effect.

By way of background, DFS published proposed regulations in the fall of 2021 for public comment.  SFNet, working with its Advocacy Committee and its lobbyist, submitted detailed comments, as did many other trade organizations. The  comment period ended on December 20, 2021. According to the DFS, it intends to review these comments and publish revised proposed regulations for notice and comment “early in the new year.” For those of you familiar with the “history” of the California financial disclosure legislation, New York is following a similar path.